I think you people here are generally too focused on the RPG systems around here. You want everything covered and handled by the system, so that it makes sense and provides all kind of feedback. But good roleplaying has little to do with what the system forces or allows you to do and everything with what you make of it. In fact in P&P I found the better sessions were often the ones with the really simple rule systems, just becasue they did not get in the way of the actual roleplaying. Roleplaying is an exercise of the mind, staying in character is something YOU have to do, and I have no problem applying the same discipline to CRPG's as well.
I don't have any problem with the discipline, and I recognise that good roleplaying tends to happen independent of system. But I'm also recognising the big difference between P&P and CRPGing.
If I make a choice and roleplay my character independent of the system in a P&P session, then there are other players who react accordingly to the choices I make, and also, a Dungeon Master to account for my choices and tailor the campaign, encounters and NPC reactions accordingly.
Single player CRPGs don't offer this kind of social interaction, so they need to substitute something in its place. If a game doesn't account for the RP decisions you make, why play the game? Why not find a nice patch of sun, kick back, and daydream instead? You're flexing that imagination without any of the constraints of a CRPG. Or even better, how about commiting some of that imagination to some form of creative media, like art or literature, so others can enjoy the fruits of your imaginings. That is after all what P&P RPGing is, entertaining yourself and friends with a collective creative output.
If the console kids don't have the discipline for that I can understand that, but that you guys, self-proclaimed hardcore RPGamers can't, that surprises me. So if you want to feel tempted to evil by wearing daedric, go ahead, but don't force me to do the same. Leave some room for free roleplaying and imagination, don't simulate everything.
I'm not really about discipline here. I can manage to stay in character and freely roleplay, but I find it mostly unfulfilling. I don't want a freeform sandbox where I can do as I please and orchestrate the events as I see fit. Here's how I see that theory at its most extreme:
The NPC greets you.
"I find that tone of voice insulting, and being the proud Orc Barbarian that I am, you must now die!"
Player kills NPC.
"The Guards would have seen that and done something. Now I'd better attack an visible guards to represent the actions they failed to take."
Player kills Guards.
"Oh shit, now my faction with this town is ruined, I'd better pay some kind of fine for my heinous act."
Player drops money.
I can just let my imagination run wild if the game doesn't account for anything ever. But it doesn't really do it for me. Even fan fiction is a better outlet.
When it comes to CRPGs, I want a reactive world. I want to be able to make choices, and have consequences simulated accordingly. Ideally, across a huge gamut of potential actions and events. That way I'm participating in a dynamic narrative, not just making it up myself.
So, should it really be the game that "corrupts you" or should it not be up to you if you want to play that corruption or not? Your example regarding magic and armor is a different thing, becasue it is all about game balancing and should be judged on that basis.
Game dynamics should be inseparable, for the most part, from RP in a CRPG. Game balance is there to make valid character choices comparable, and to maintain a fairly even comparison between players who have made varied, but theoretically equal character choices.
I don't see why that balance shouldn't extend to other facets of the character, like how he chooses to present himself. I don't want to wear the armour that is clearly defined as evil, because my character does not want to present as evil. As I've stated before, I have no problem mustering up the self discipline to not wear that armour, but I'd rather see both the game accounting for my choice, and some degree of balance between a variety of uber gear.
And how exactly should they react?
"This guy is wearing the best armor in the world. He must be evil, because it is black. Arrest him!!1"
Or how else?
How about, you're in a game world where the gates to Oblivion have opened, and Daedra are invading. If an ordinary person in that fearful situation saw
this coming at them, do you think perhaps they might misconstrue you somehow? What about those who are trying to defend Cyrodiil from said invaders. Would they stop and ask everyone who looked fucking evil and demonic if they were a big evil daedra lord, or just some guys dressed up as one?
Given that even our own advanced civilisation has more than its fair share of xenophobia toward people who "look like terrorists" would it be fair to assume that a far more primitive society would be even more fearful and hostile toward what they perceive as the enemy? Let's continue with that, and consider the minor threat that terrorism poses in our own world, versus the impending doom/apocalpytic implications of "Hell on Earth" in Cyrodiil.
I believe something similar was implemented to at least a half arsed extent with Indoril armour and Ordinators in Morrowind.