This has been about one thing and one thing only - Larian gaining publicity by stirring up some ponds. They knew exactly what they were doing when they pitched that scene, approved it, implemented it and decided to present it publicly as one of the few highlights of their massive game. It has nothing to do with worldbuilding and lore, it was intended to be provocative and edgy and I consider that to be very low on their part.
Except
everyone in the audience wanted to see exactly what would happen and they all laughed at it and were thrilled to see the variety of choices. So is it Larian intentionally trying to be "edgy & provocative" or did they simply show the wide variety of wild choices and giving people exactly what they were yelling for.
If they wanted to be provocative and edgy, they could have simply shown the main character dismembering a child and eating its limbs while it's still breathing. So sorry to say, but I completely disagree.
I personally couldn't stop laughing during this segment and the squirrel at the end utterly killed me, it was brilliant.
Then I'll simply have to agree with @Wormerine above that Larian's juvenile humor is just not for me. Plus, I see Sven yelling "this is all your choice" as an embarrassing attempt to throw us off. THEY made the creative choice to put that in the game when they absolutely didn't have to and the Forgotten Realms wouldn't have been any poorer for it, and THEY chose to present it to an audience where most people picking the craziest option is a safe assumption.
Again, as i wrote above, go look at that part of the presentation yesterday, where Sven talks about the game, they want us to battle these darker aspects, they want these things to be part of the game, they want it to be part of choises, and its up to us if we give in to these morally darker urges... and as such the game is also M rated... right or wrong, well im not going to argue how someone chooses to write a book, make a movie or a game, its their creation... i as a consumer can either play it or not...
It's not presented as a dark urge but as a wholesome thing. I mean, fair enough, it's their free creative choice, as repulsive and underhandedly presented as it is.
