I'll bow to your superior knowledge regarding D&D since mine comes entirely from hearing other people talk about it! Maybe the pigeon-holing isn't quite as bad as I'd thought but I think I may still feel a bit constrained. I like fine-grained reputation systems but even then can feel a certain degree of pressure to perform as expected.
It really all comes to the DM honestly. But most I know don't pay too much attention to it, it's more guideline to envision your character. That's also why I don't think we need it in DOS2.
I agree that's a good thing if used sparingly; and if done properly, as I'm usually reminded of Fallout 3's Tenpenny Tower quest as one whose "unintended consequences" was done very poorly and it wasn't so much a case of feeling bad as feeling irritated... had it been better written I'd have left it at feeling bad but instead I used the console to manhandle its outcome in a more agreeable direction.
I actually had in mind the Witcher 3, where you make certain choice really not knowing the impact it would have later, then the revelation!
But I agree it has to be really well made otherwise you either feel you choice did not matter or it was almost the opposite of your choice.