I would be very interested to see this system of morality used in games that could really affect the player.

For example, imagine a realistic WW2 game (as oppose to the gun-ho nonsense so far) that requires you to fight in Berlin encountering young Hitler Youth members armed with a pistol and a few rounds.

Some of these children would fire at you whilst some may be simply terrified. I wonder how many players would open up on every single one they saw or how many would try and get them to safety?

If games want to be taken seriously, especially in terms of using morality as a mechanic, then they will have to start using more "real life examples".
IMHO anyway...