I tend to play good.
I think the lack of paths in between or being able to mix it up is due to societal pressure since going into the gray areas is likely to offend someone out there.
Take Fallout 3's "The Pitt" expansion for example. People have talked quite a bit about the moral quandary in that one.
Now let's say your playing a game that let's you effectively take on the role of Ashur as one role among many. Here you are, forcing people into lethal slavery, and experimenting on your own child because of the possibility that her DNA could end mutation and save humanity.
It's one thing to have a protaganist run into something like this from the outside, but yet another if you run a game that say allows you to have your own gruesome slave trade/factory and engage in child experimentation and yet not be considered evil... because well... you are doing the right thing overall under the circumstances in the messed up world you exist in.
If you were to say introduce something that could end up this way into like the Kingdom management aspects of Baldur's Gate 2 (Or Neverwinter Nights 2), people would start screaming about Auschwicz as you march conquered serfs off to be worked to death "for the greater good" and toss in a bit of Doctor Mengele (the science aspects) for good measure.
By putting the great big "EEEEVVVIIILLL" sign on things like that, or keeping them to the backround (far more common) crticism about any kind of relative morality is avoided.
In games you don't make tough desicians and have to worry about concepts like morality by the numbers (and how hard it gets to argue against it when the numbers are big enough). All you do is choose between comic book extremes, because honestly it's safer for the producers that way.
I'd like to see this change, but let's be honest, they won't even produce 'M' rated games with true 'M' rated content (such as well... sex). God forbid they actually create a game that involves actually making hard desicians and having to do the wrong thing for the
greater good. That might interfere with people's naive, forward thinking liberal mentality.
