@Cobaltasaurus: I like Lords and Ladies, and I like that the setting opens up such a huge amount of imaginative possibilities. I also like the extended family feel of the setting, which (and this will sound funny to anyone who knows the books) I think works to soften some of the hostility that can crop up in L&L games about less familial groups of people.
@Ganymede: d'awwwww!
@Sunny: I think it would be extraordinarily hard to do DRPG-style character creation in a persistent environment. But I think you could do something to indicate who is "the best", or at least who's among the best. Here's what I have in mind ...
I'm going to take RtA's mechanics -- which I actually prefer to the DRPG for a large-scale game -- as an example; for those who don't know them, there are four stats (Force, Grace, Wits, Resolve) and then a large number of possible powers that may add to your stats in a particular situation (e.g., being a badass swordsperson). When you get in a conflict, you pick a stat, your opponent picks a stat, and you both total up your stats and add appropriate bonuses (plus a random factor), then see who has a bigger total. If you both pick the same stat, then yes, you add the same number twice.
So if you have a character whose high stat + bonuses in one of a variety of areas is in the top X% of the game, that character gets a little tag in his or her +finger that says "this character is renowned as one of the greatest swordspersons alive." Doesn't matter if it's primarily stat or primarily bonus -- although if you wanted to you could have little secondary tags that say 'this person is renowned for their legendary Resolve' or 'this person is widely known to be a skilled swordfighter', when they have a high-level bonus or a very high stat but the combined total doesn't push them into the stratosphere.
This allows the rankings to evolve organically, keeps the number of people ranked as "one of the best ever" in rough proportion to the game's total population, and allows people to be informed about who's good and who's GREAT ... while still allowing players to keep /some/ secrets. Even if people know you're one of the greatest swordfighters alive, they might not know your preferred style (i.e., what your high stat is); and even if you're renowned for your razor wit, people may not know whether you focus more on being a dangerous duelist or an expert in cutting remarks.
You could even have an additional power that you can buy to lower your "effective" ranking, if you want to be one of those people who trains in secret until they're the best in the world: you can do that, but it costs something to keep your actual skill level a secret. The default is that once you reach a certain point, the general public is aware that you're a badass.