The problem with reputation: does high reputation attract too many upvotes?
The idea of getting greater privileges with greater reputation is good, but what is the benefit of publicly displaying that reputation? Since SO claims to be about good questions and answers, that purpose is better served if the reputation is only visible to the account owner (and, of course, the site admins). This would better ensure that content gets pushed up solely by its merit, and not based on the author. (See The problem with reputation: does high reputation attract too many upvotes?)
Edit (copied from comment to an answer below): Once you have gathered high reputation, you can also gather more reputation with ordinary answers, especially from newbies (newbies on the topic, not on the site) who usually choose to accept or upvote an answer on the assumption that "since a high-rep user has posted it, it is probably right". Can you guarantee that doesn't happen often?