cmfalconer: I believe he should've gotten a Smuggler ID. I've flown way over 200 hours on my train, which has had a Smuggler ID since the very beginning. Never really had a problem, only got caught smuggling a single time. Although NY is an ocean of piss, even then nobody really could or did try to destroy me, even though I dock on Manhattan regularly. And it's not due to "fast docking lol" either, factions treat Smuggler ID like Trader ID (the proper way to do it) and stupid untagged fighters sometimes do yell in exasperation, but nothing ever comes out of that. They are bound by the rules just like anyone else.
Spear: Except you miss the fact that in RP you cannot just "scan and read ID". The ID is there for char RP identification, in this case to solidify that this persona is a shady and possibly untrustworthy to lawful characters. It is NOT a actual IFF that characters ingame would ever be able to see, the reputation tag plays that function and is recognised by the HUD accordingly. Technically my transport is just like any other one when I pass nearby, unless of course I have contraband onboard. The Smuggler ID, like Joe said earlier, to you indicates nothing else but some suspicion with no proof.