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lestatdark said:

Humanity allows you to return to human form (which gives you a higher rate of item discovery), allows you to kindle bonfires to gain 10 estus flasks, increases defenses, increases curse resistance and there are some conflicting reports about it increasing damage from weapons and some pyromancies. 

http://darksouls.wikidot.com/humanity


I'ts also been reported that it changes how certain NPCs react to you.

Like covenants, it is belied that it has effects that haven't yet been discovered.