I disagree partly with this. Historically, there's been quite a spectacle of sorts to executions and punishments. Christians in with the lions, severing limbs for theft, shopkeepers setting up stalls around the gallows, that sort of thing. The timeframe of DF suggests that quite a few dwarves would enjoy a watching a good grisly punishment, to show that the government is protecting them from thieves or murderers or whatever have you. Indeed, I'd argue that the hammerer should be more likely than anyone else to love a good punishment.
Point. However, the dwarves in most fortresses are all friends with each other. There's almost no class structure. Dwarven society is sort divided to Noble, Legendary and Other, but everyone still goes to the same parties. If we get class structure, I guess the higher-class dwarves wouldn't be too shocked to see lower-class dwarves get killed for some percieved crimes.
So. Dwarves might enjoy executions, depending on personality, whether the dwarf watching knows the dwarf being executed, whether the dwarf being executed is from the same social class as the dwarf watching, and whether the dwarf being executed has actually commited some crimes. I guess if you tried killing crazy many peasants for no reason whatsoever, everyone should get a bit concerned, but things would go fine as long as you provided for them and didn't kill anyone they know or care about. And watching a close friend get the hammer for no reason whatsoever should still make a dwarf semi-permanently bitter and angry.
[Running a fascist nightmare state] shouldn't be [easy], but it really is. Easier than running a democratic/senate/republic state is.
Really? Because I was under the impression that the countries that don't treat their citizens like shit are winning at the moment. Happy people are more productive and easier to keep from breaking stuff than unhappy people.