After doing so we have been given permanent exclamation points above our heads and can no longer talk to one another or our companions. When we went to town we decided to try and kill the townsfolk too. They died without resistance. No one fought back.
I would call it GREAT AI, because it can analyze how stupidly you play, and react accordingly.
Next time you play, I suggest you kill every living things in town ASAP, and come here wondering why no one gives you a quest.
Stupid "freedom" bullshits. Waste of good time and energy just to satisfy some lunatic psychos, which, with thieves and murderers and pillagers, seem to make some part of the audience here.