They only way I would accept any dynamic alignment system was if it was only 1 "level" you could change:
Principled <--> Scrupulous <--> Unprincipled <--> Dogmatic <--> Anarchist <--> Aberrant <--> Miscreant <--> Diabolic
If a paladin fell to scrupulous, s/he would basically be blemished and lose their spells. Same for a hellion becoming anarchist or miscreant. Same would go for priests (for straying from their god's ideals) and perhaps shaman (for straying to far from their ancestors). The other classes, however would get a twink out of jail free card - ie: no repercussions. Hence I voted no.
PS:
grep wrote:
something something something boring story about some character that turned into an elf something something golden age something something complete
Reminds me of Eliro, the backstabbing griffon rogue who used a baby as a weapon?