Hmm...what do people understand of the Good/Neutral/Bad issue?
Kromoh has realised a few essential points, as I think, has Carou. It isn't two factions (Good/Bad) and some Neutral folk wandering in between. It's numerous factions that cross over ideas of Good/Bad. It's factions fighting for control and power, not principles.
The power-play between players should be taking over as the major drama at this point. Making uneasy alliances, uniting heroes, betraying each other...it's all key to survival.
From this point on players can (and will ;)) die as a result of their actions. It is in their best interests to secure power and security.