If you deal with the first two undead by casting the fireball spell from sneak, or start a fight and kill them, you get experience. If you set the oil on fire without harming them directly, and that kills them, you get ... the satisfaction of a job well done.
I know it's hard to code for that sort of thing, but in a game with a soft cap based on the total amount of experience you can possibly get, it seems like you'd want to get credit for killing things smart.
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Why is Ragequit's ghost female? Gender dysphoria, I suppose, sure, but it's a bit of a disjunct. And Death may have many forms, sure, but that doesn't mean *a* dead *individual* necessarily does.
(I know. It's Ragequin. Let it go.)