I think it's important to remember that no matter how realistic a game is made, there are always some things that cannot be simulated. The most primal of these non-simulatable factors are compassion and a fear of death. The fear of death is actually modelled quite well in the mod, since dying resets your character to a weak and unsafe state and loses hours of progress, but is still not nearly as much of an incentive as it would be in real life (obviously). Any more serious consequences for player death would almost certainly be excessively irritating and not conducive to gameplay, so this will probably have to be left as-is. The second factor is compassion, the lack of which is the essential reason behind the creation of the morality system. In a real-life survivalist scenario, most people would retain (up to a point) the morals and belief systems that served them in civilised life. This means that your average person would be very unlikely to simply kill a stranger for the items they possess unless they had no other option. In essence, modern society puts a great deal of 'weight' or value on a person's life, and this is not simulated in a game where your actions are anonymous and at a distance, and their consequences are small and acceptable. Essentially, players in this game act like psychopaths who believe that their actions have no consequence because that is, quite simply, true. If the developers of this mod want to bring the human interactions within it more into line with reality, then they must find a way to simulate human compassion in a situation where it is unnecessary, and this is what the morality system is trying to accomplish. The trick is to find a way to encourage cooperation without limiting player freedom or removing the intriguing element of mistrust present in the game. My advice at this point would be to attempt to reduce the danger of trusting other players, rather than attempt to punish uncooperative behaviour. This might give cooperative groups more confidence to interact and reduce the amount of unnecessary murder.