I did feel like the game was punishing me for being evil (99% sure I got less loot than my good playthrough, most of the traders are dead and didn't drop all their stuff, good people get a Halsin in their camp and evil people get an altar to the Absolute). There is an evil choice for dealing with the tieflings though, you can go to the goblin camp and talk to the drow and offer to join her in her raid on the grove.
