The police protect everyone, if they like you or not. That is the Concord in EvE and should be like that. They already have different time response depending on System Sec-Status and the Police Navy attack those who don’t like; E. you have negative standing with the Caldari, they will try to attack you in their Space.
I agree that Faction Standing should mean something more, but not like the OP suggest and no like you do.
One example could be Citadel Anchoring Rights, instead of Free For All like now. Could also open some Standing Market for those who have high Standings and Corps without Standing.
Another one could be Skins, as they are so popular these days. A Special Skin per Faction and if you reach some conditions, they will give an exclusive Faction Skin.