I think they might have figured out that a lot of that honesty and character was a facade. Is the false appearance of morality better than just showing yourself as you really are?
You mean that people lie and cheat? That's always been the case. The point of honesty and character is precisely that they reflect a person's ability to value a higher good than their immediate self-interest. Let's not throw the baby out with the bathwater.
The fact that reputation has been subjected to unprecedented arms race in the face of the internet and social media doesn't fundamentally change the game, it just makes it more exhausting and overwhelming to pay attention to.