Does rep even matter to the AI?

In every game I've played, eventually each civ is labeled as a liar and cheat. It makes me wonder why there is even a thing called rep in the game.
I believe the primary reason is alliances and MPP's. Once your involved in either with several civs, it's nearly impossible for the player or the AI to get out without taking a rep hit. Over and over...
So rather than lose all production during anarchy and rioting, or change Govs to something less productive you have to take a rep hit.
There's gotta be a better way. The suggestion of a non aggression pact sounded really good to me. Especially when playing against civs like the Celts.
They have a tendancy to call every civ and it's brother into any conflict they are involved in. Once that web is woven, everyone eventually gets the lowest rep possible.
Any thoughts on the matter?

The higher the level, the more often the AI will sneak attack another civ. That damages their rep. Not all civs are liars and cheats. Some are even isolationist.

Originally posted by Chieftess
Not all civs are liars and cheats.

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It isn't hard to turn all of them into liars and cheats while keeping your reps 100% crystal clean. It's probably is a good idea to do that so that they can not trade gpt with any body else, except you.

You just have to avoid some of the usual items which can cause yourself a bad rep. MPP is one which is highly volatile and can cause a bad rep easily, although it is powerful. Luxury/Resource trade is another one. I also believe the luxury/resource trading logic is not good enough. There are too many circumstance that, through no fault of yours, the trade route gets cut off. Also, recently, I come to realize that if a civ is killed while having a trade route with you, you may get a bad rep too. Totally illogical I must say.

Originally posted by Qitai
Also, recently, I come to realize that if a civ is killed while having a trade route with you, you may get a bad rep too. Totally illogical I must say.

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Also, if you form an alliance against a common enemy and destroy that enemy before your alliance expires, you would get a bad rep too. Totally illogical I must say. And yet, Firaxis wasn't in any hurry to fix that but rather waste a lot of time monkeying around with corruption that was working fine before.

Have to agree with that, although from a certain perspective, I might have been the one who opened the pandora's box.

I never care about my rep. In fact it's always part of my strategies to brake commerce deals and RoP agreements. At least in high levels it seems crucial for my wins.