I will admit, it does add a bit of drama to whole RP experience. It has its pros and cons.
I have a dm who likes to have their sentient monsters actually be people, and it really depends on the players as to whether this lands or not. One game we had a very new player who basically got into a big out of character argument with us about the morality of killing the goblins (despite the fact that the goblins were very much trying to kill us and not being wishy-washy about doing so). I personally like it, I feel it adds a bit more depth to things, otherwise i might as well be fighting cardboard cutouts with angery gerblin faces drawn on. But also, if I'm playing a character that would kill the goblins, then I'm going to try to kill goblins.
