Thinking about Baldur's Gate, more precisely that following the good path during quests gives better rewards, more cash, loot, XP, and better treatment at stores (cheaper stuff), which means the game punishing you for doing evil deeds.
But then I think among NPCs the Evil ones are stronger in their roles. Edwin the best mage, Kagain the best fighter, Viconia best cleric (when given some enchanted item to boos maybe her constitution, not sure). And maybe others.
So this could be a balancing act.