If I wanted to play an Oblivion-esque game I'd play Oblivion or Fallout. Demon's Souls fills a different kind of void than Oblivion, and I don't want it to change in the slightest. The difficulty is actually a welcome; it's a throwback to older RPGs I think. Demon's Souls is by far one of the best RPGs that I've ever played, and one of the best games period that I've ever played.
You get caps and experience for selling the fingers to the head of the Regulators if your good. I haven't done the Contract Killer perk though, so I don't know about the evil side to it.
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