I usually choose "good". Yeah, I'm from the USA. "Evil" is almost always silly and for-its-own-sake in games, which hardly ever exists in the real world. And the rewards are generally better with the good path.
I think the whole system stinks. Good and Evil? Again? Fuck that shit. Gimme X factions with unique worldviews, all of which might be "right" and "good". I'll align with one or more of them, and that shit will clash, and it will be epic and I will be good and they will be evil, cuz it makes sense with my character's beliefs. And then maybe I'll honest-to-goodness wanna play the game again with a different faction/ideology, cuz the game'll be, like, smart and stuff.
But yeah, the game will have to actually *be* smart and stuff. You can't wimp out with a blue-to-red slider bar. All X factions better give convincing arguments. The dialogue will have to be believable, and there will have to be a lot more of it, to cover the different permutations. Since everything has to be voice-acted nowadays, it'll take an immense amount of resources and time to get that together. If it takes too long in development, the graphics will be like totally made of fail, bro, when the game finally comes out. It won't sell, and bleh, scratch that, it will never get made, not anymore. Unless it's art, for free.