I try to do the best I can. Sober, idle Dwarfs are unhealthy Dwarfs. But I also try my best to keep them happy. I even glance at random status sheets of Dwarfs to see how upset they may be, maybe lacking a proper bed or something like that.
Now, I am making a 3 tier society, where the Surface Class dwell in crowded houses, crowded diners, and one semi-large tavern, next to noisy workshops. They spend their time working in the rain, in the sun, and, in the few areas they do work that is underground, the chambers and tunnels are normally plain and uninteresting (but I have done some urban improvements). So my Fortress, on the surface, comes across as a slum. I have even found a few falling asleep in the middle of hunting down deer and sometimes only a few blocks from empty beds.
But I still think of myself as a Good, Moral Overload. They have a ton of food, with great selection, and a good supply of booze. I keep the many niche artists, like Wax Workers and Bone Carvers, with just enough work to keep them from going totally insane. Only a few kids have been snatched, all invaders and monsters have been defeated, and the walls, drawbridges and roads have been finished. There are two hospitals, the livestock are all safe inside the Fortress, we have war dogs and traps at the bridges, and we have broken into the caverns in three areas. In fact I am thinking that once I become a Capital in lifting the bridges and using the caverns to supply me with wood, plants, water, fishing areas, and silk. The fact is, the traders really do not bring me the items I want. Once the Fortress is closed I could really start organizing the three classes, using barrows, and adjusting the military, stockpiles, and so on.
I think of myself as a Good Moral Overlord based TOTALLY from the viewpoint of the Dwarf society within my Fortress. The Nobles are happy (most of the time), the Stone Class have good, PROPER UNDERGROUND, housing, are protected, my vampires are happy, the City Guard have not killed anybody who didn't need to be killed (like those who go insane) and these Dwarfs only have to go out into the sun when they need to do something with the walls or buildings.
And the Surface class. Well...they have gotten use to the sun. True, they are covered in water much of the time but..you know, it keeps them...clean.
And as for the children - well, out of the 250 plus populace, they make up a good 80 or so. When most of them grow up I am thinking of creating a untouchable class of Haulers. No other skills. Just going where they are needed and moving stuff. And if a few get snatched...well, like the Middle Ages in Europe, that's why you have a ton of them. In the original Red Riding Hood story she was eaten by the wolf. Period. The theme of the story? Stuff happens and you die.
And to be fair, if a kid can't beat off a thief or goblin ambush well, I doubt he would make a good farmer anyway? Am I right? Of course I am right.
Let them run free. Some of them even work and have been picking up skills from the adults. What more can you ask for?
I don't go out of my way to kill Dwarfs, all beds are under roofs, and many of the workshops are either underground or also covered with a roof. I have not tried any mega-projects to create the weapons to destroy the world or to kill off unwanted members of the Fortress or to keep the number of kids down. Nor have I decidded to make a vast temple or a giant statue or a arena for blood sports.
I don't even have a danger room.
So, to me, by the standards of the society I am running, I am a GOOD Moral Overlord. No, I am GREAT! No, GLORIOUS! And modest too!