One problem that I find with Fallout 3 is that it kind of paints nihilism in a very stereotypical way, as if all nihilists (including myself) want nothing but destruction. It assumes that, from anarchy, nothing but chaos will spring. That people don't have enough logic and intelligence, even after how far we've gone with science, philosophy, technology, etc., to maintain well being.
Now, back to the choices discussion. Regarding morality systems, I think we should be able to see a game where there is no actual automatic reward for your "good work" or "evil doings.' Just think back to reality.
Every day, we interact with all kinds of people, whether it'd be friends, family, coworkers, customers, etc. And just because we made one "good" or "bad" choice, it doesn't mean that others will only remember that one thing. They will expect more out of you. Sometimes you'll impress them. Other times you may appear to be a failure.
So, instead of having one town or NPC fixated only on the one choice that you made, it will still appear rather neutral for the most part. Unless you perform something very controversial, very questionable, nobody will hate you for it. And if you're not that widely known, enemies in the nearby area(s) really should have no reason to go after you, nor should most people have any reason to respect you a lot.
Or maybe the real problem with such forms of game design is that they hold you to the degree of either the "hero" or "bad guy." The same goes for everyone else in the game. If everything appeared meaningless (that is, everyone went along with life and just did whatever they wanted) in a game, with no big plot (or no real plot for that matter), you could probably call that a game about nothing, which is similar to the idea of a show about nothing (Seinfeld comes to mind). There, you'd see a bunch of random situations occur, surrounding people's lives, still fixated heavily on the character, but, in the end, only concluding that life is meaningless, and that it is just about filling up one's time as long as the hourglass is not empty (death).
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