Mortal Online copied the murder count system that UO had. It was the same way. I'd sit inside a house while AFK to get rid of the murder counts and stat loss. The system of waiting it out AFK seems dumb to me. One improvement to that system would be to have some kind of PVE quest that you can do to regain alignment. Paying gold would be another way. You shouldn't just be able to wait it out.

Stat loss shouldn't be part of it though. Being red just means you can't go where the law is!