I know about Morale, and JohnoBoy has mentioned that it also records the blast shards youve collected, but what else is taken into account?
Completing the game as good or evil grants you the option to start at hero level 1 or evil level 1, respectively. Regardless, there's a 1000xp bonus for any game completion, good or bad.
There is a an energy core bonus for collecting 25% of the shards, another energy core for collecting 50%.
Also, the game will sometime reference karma decisions made in the previous game, for example, when collecting a certain dead drop in Infamous 2 I heard someone describe my karma choice in the doctors rooftop rescue mission in Infamous 1.