Yes. Players are generally offended by the notion of their character changing from the pre-set design they have in mind. It doesn't matter how many members of your family are raped and gutted before the PC's Paladins eyes, the player still wants to play his character the same as when he was dancing across a field of posies. If the player does by chance happen to change his actions and morality as a result of the sequence of events, he'll delightfully come up with an excuse for why he hasn't really changed at all, then get pissy when the game disagrees.
If the player decides in advance that he wants to play his character as a Paladin, no amount of adversity, horror, or even greed on his own part will prevent him from wanting to ride off into the sunset on a white horse.
I don't recall a morality system in those games, but I have played them. I don't recall much. Torment had probably nearly no use for one as all the important things that would be relevant were managed in other ways, but hey, it was still D&D. I can't even fathom what the point of it would have been in Fallout.