I agree with this. At this point, I think grey worlds of morally grey greyness worlds where you can't do your grocery shopping without being presented with some ambiguous moral conundrum have become more trite than Good vs Evil.
And what you do with this, is add a few "grey" areas in the middle of the chain, such as doing a "good" quest, having a grey area in the middle and whatever choice you make can spiral that into a more Evil outcome.
Edit: To go a little more in depth, it would allow you to actually "fall from grace" or "redeem one's self" in game. Gradually. You can either make subtle grey area choices that over time weigh up to redeeming yourself for sins, or it can slowly become your character's descent into madness.
Some games do this, but usually when you're trying to join a good only or evil only faction when your morality is... unsavory to them. I'm thinking more along the lines of a quest chain where you're doing tasks for a supervisor of some sort, and along the road you find out that he may or may not be who or what he says he is. You can choose to ignore it, confront him, or take it to another officer, and the outcome can end up as anything from being attacked by your former mentor for being a traitor(going along with it for a while, then turning him in after getting your due) to becoming the head honcho of a new organization after plotting the demise of some.. competition. And then backstab and kill your own mentor. Or do his deeds till you notice something's not right and turn him in immediately... only to find out your lead was wrong(or bribed) and you have to make it right.. or do you?
Things like this make it interesting. Every organization has it's corrupt fools and overzealous preachers... why no play both sides from the inside?