The issue of morality is only interesting when players are free to make meaningful choices. At other times Larian rewards immoral players, such as by buffs associated with negative traits (egotistical, heartless..). I don't debate there should be punishment associated with some player choices, but the punishment should be engaging, or even fun (jump scares, debuffs, fights, reputation loss etc).
Well, I agree that there are more interesting punishments than instadeath.
Regarding the one grave in Cyseal there is, however, a nice backround insider story attached to it. Do you notice this one cute fluffy sheep standing next to the grave? It can be actually considered as THE sheep which gave birth to all the weresheep. Back in Kickstarter days, Swen and David were streaming the game on Twitch TV. So, at one point, they came to this house with the cute white fluffy sheep which was merrily turning somersaults in a blissful ignorance of the impending danger. Then, something went horribly wrong and the sheep was fireballed... and exploded... Of course, its sad fate didn't go unnoticed and people in Kickstarter comments were eagerly discussing the sheep and how it could defend itself from the unjustified source hunter attacks. And here is where the weresheep first saw the light of the day... This however, did not prevent some people during following Twitch streams from demanding that the one sheep should be again fireballed - fireballing a sheep actually became something like a running gag.
So, I believe, with this one exploding grave in Cyseal Larians took vengeance for all those innocent fireballed sheep... It actually gave me a very good laugh and I was gently reminded of the good old Kickstarter days.