I prefer the way Exalted does alignment (Actually, I prefer the way Exalted does everything). Instead of alignment you put character creation points into four virtues, Compassion, Conviction, Temperance, and Valor. With some limitations, you can get bonus dice depending on your level in a virtue when you take an action in accordance with the virtue (So someone with five Temperance could get 5 bonus dice to resist temptation). Also you have to pick a main virtue, and must either make a successful check or pay a cost to resist the call of that Virtue (So the aforementioned Temperate character would have to lose temporary willpower and increase his Limit score, or pass a check, to go drinking and whoring). If your limit reaches ten (There are other means of increasing it) you risk a Limit break, which is some curse put on the Solar Exalts by the Primordials, wherein your virtue fails catastrophically. The Temperate character might give all his stuff away, put on a hair shirt, and run off into a cave for a week, or he might lose all inhibition and go on a debauched binge.
It's better and more nuanced. It's not an impossible dichotomy that horrible GMs can use to fuck with the players, and there's not as much room for abuse on the other end, by horrible players who want an excuse to fuck up the game with "wacky" and "random" bullshit.