A:
The matter with me is that you're a published author of a book, a medium that enjoys a lack of censorship and allows the reader the opportunity to read anything potentially without censorship, and you haven't given anything more than a moralist's knee-jerk reaction than "killing children is wrong."
Fine. You're right. Killing children is wrong. But in novels, children get killed all the time. Films and television too. Hell, the Simpsons have done it on Hallowe'en specials.
You wimped out. You didn't complain about how the mod ignored the opportunity to learn from other media (e.g. horror works best when its unseen) and reduce the murder to an off camera cut scene where most of the horror comes from the sound, not the sights.
You didn't argue that by having mods like this on next to cat fetishes skins and anime eyes and whatever else modders care to imagine its only going to make the maturation of the game as a medium slower, and keep it mired controversy and tabloid moral panic for years to come.
You... just became another guy on the internet. If "Godwin's law" is the term for dragging Hitler or Nazis into an online argument on a moral topic, then there has to be an equivalent for its cousin, the other indefensible bastards, the child molestors.
Do I want a child killing game? Do I want a child raping game? NOOO.
But the point is, I want roleplaying games where killing is not the unique selling point and focus of a player's ambition and action. Removing kids from the equation as an unwritten default of an FPS social contract just means the status quo of if its a "first person perspective games, slap a crosshair on it at the center. If the punters can't shoot something they're not interested" continues.
With kids, it becomes "er... maybe seeing as there's kids around you should try take a leave out of REAL life when role playing? And I don't mean act like a high-school shooter that we're always getting lumped in with".
That said, I acknowledge there are other better ways of dealing with this too. When was the last time there was an expectation for "respect for the dead" in an FPS? Like informing the guard in the next village you saw a merchant get killed before you could do anything? Lead them to the scene so they can recover the body? Even see to it they get a good burial?
You have said yourself that you wanted a better morality system than the bastard points/boyscout points scale, but that won't work unless more of life's complexities are added to the game and their consequences are allowed run out. That will sooner or later include genuinely distasteful elements into a game to make a moral decision making have a real place in the players mind, rather than simply compairing which is their favourite ending or which result pays better loot.
If I'm being a whiny, ingrateful cloying fan, its because you've set the bar high and written consistently thoughful pieces. This seemed... phoned in.