Interesting stuff, but I don't agree with some of the things.
First of all, I don't believe in the stark difference between all this Good and Evil stuff, because these are very vague and arbitrary definitions of social behavior. Yahtzee said it best in Bioshock review, that the game leaves only two paths, one of which leads you to be a godsend flowerchild from eternal garden of Heaven, or a cross between Hitler and Skeletor who's mere piss is pure malevolence. There is a gap the size of the Grand Canyon between the two, which is actually the entire social spectrum.
Good and Evil is two totally relative term, relative to the social setting. In most games, the Good choice is always being humble and selfless, giving money and help to the poor, fighting the "evil", refrain from killing as much as possible, and sacrificing oneself for the "greater good". Whereas the Evil path only leaves choices to be an anti-social, egocentric, murderous psychopath, who reject social rules, sees people as mere nuisance, doesn't care about the world one way or another and thinks it's only there for his own amusement. In these games, the two paths are clearly defined and you will inevitably go down one of them. But what about more complex situations, where the outcome is not black and white?
There is a highly quoted situation in KotOR 2, where you meet a beggar in a station, who asks for money. You can give the man some money or not. The clear answer would be, good: give money, evil: not give money. But after you leave, if you gave money to the beggar, some thugs come and beat the beggar to a pulp taking his money (you have him), killing him in the process. So, by choosing the "Good" path, you indirectly kill the poor guy.
I think we need more choices like this, where the outcome is not entirely obvious, and requires thinking. When being a nice guy only makes matters worse, and deciding not to interfere in a situation is not considered "evil", but simply smart. That Jack Bauer-esqe situation, where you must gruesomely torture and kill someone to save thousands from certain death, or you have to kill an entire village of small, crying children to prevent the spread of a deadly virus. The "hard choices" where the line between Good and Evil is blurred or non-existent, when morals would only make thinks worse, when the "right" choice is not always the "good" one, when you have to count the long term impact of your decisions. When, after doing the right thing, you feel like an asshole, that something broke inside of you, or if you did the "wrong thing" (that saved you mom and dad, but killed thousands on the other side), will later make you regret you've been born. Where no matter what you do, someone will hate you for it, where sacrificing yourself "for the cause" turns out to be totally meaningless, where the decisions you make will influence the game world in more than one way.
That's what I miss from RPGs the most.