Very interesting topic.
I appreciated the "counter-point" comment. I created a Drow Paladin character that "reeks" of counter-point.
While playing multiple Paladins, I however, disagreed with a great deal of the conversation choices and results. There were numerous incidents where "Lawful" and "Good" did not seem justified in their results. Most often however, I was forced to choose a conversation selection that my PC (nor I) would have ever chosen.
In the OP's example, I also had difficulty:
1. The orcs were standing. They were not going to die any time soon if they had the energy/will to stand.
2. While a literal interpretation might have suggested Lawful smite Evil, I actually considered that if the conversation choices were correct, than it was actually evil to leave the orcs in that situation. No matter the alignment of the creature, a true paladin would have offered healing/assistance to a non-combative creature in such a situation. Mercy and Forgiveness are the bastions of Good.
3. Casavir had an amazing memory to recognize the orcs in the lower burial room as enemies. How then was there no reaction when he encountered the above orcs whom had probably killed some of his men.
---------------------------------------------
I personally felt the alingment/influence system in NWN2 probably should have been left out. Individuals have such differing opinions on simply what IS good and evil .
----