1) Will it be still possible to lower your karma by killing mobs ?
2) Vitality is going to be consumed over time ? That means that when im afk standing in city im loosing my vitality ?
3) Does vitality increase quest experiences ?
1) Yes. Though it's not called Karma anymore, it is reputation.
When hunting and completing quests, Chaotic characters do not gain XP or SP, but they do gain Reputation points. This is the only way Chaotic characters can gain Reputation points. When a character is no longer Chaotic (when that character’s Reputation level reaches zero), hunting and completing quests give XP and SP but not Reputation points.