Kill him! Kill him!
I had the first game. Moral choices? Like siding with the werewolves or elves? Or letting the racist alienage guy go free for the landsmeet? I wish my choices had more effect on the game though. Looking forward to the second one.
Moral choices? There were two "evil choices" and one "good choice". There was no ethical troubles with it. You could either rile up the werewolves to slaughter the elves (causing them to be stuck as werewolves and getting you werewolves in the final battle, this was an "evil choice"), slaughter the werewolves and the Lady in the Forest (which gets you the elves and is another "evil choice") or free the werewolves from the curse by convincing / killing the shaman that did it to them to go back on it (which is the "good choice" and gets you the elves).
Now, a good "grey morality" quest would be that a prostitute has murdered her abusive pimp in cold blood. You can let her go or put her into jail. (Or kill her or pimp her out or whatever.) On one end of the scale is chaotic good whilst the other is lawful neutral. If you let her go, though, others will be thinking you'll let them off the hook if they have a good enough excuse, and will naturally murder people after (basically) losing faith in the law.
Do you see the difference? In the werewolf versus elf quest, there's a fairly obvious "good character" path. In the Cold Blooded Hooker quest, it's law versus emotional judgement. Superman would let her go, Batman would put her in jail.