An interesting view I gotta give you that, but your comparison to North Korea and the likes is fairly ridiculous. Do keep in mind that this is just a video game, and in a world that has been teared apart by nuclear war, circumstances are quite different.
North Korea was the only nation operating as a dictatorship of personality I could think of while typing; just as Caesar's Legion is built on veneration of Caesar, North Korea is based on veneration of the Kims. There are many parallels, but they are parallels with almost any dictatorship. The key is this -- the rank and file of evil regimes think they are doing 'good'. Look up 'banolity of evil' if you're unfamiliar with the term.
Circumstances being different in a post-apocalyptic world meaning there would be a greater need for discipline? Can't argue with that.
Life would require discipline in almost every factor of life once the great manufacturing centers, factory farms and retailers were gone. You would have to ration your food intake, provide for fuel needs, stay on constant alert for opportunists, construct and repair your protective clothing, keep weapons in top repair and keep your domicile secure from the elements. It would require hard work and most of your time would be spent just staying alive. Raiders and thieves in such an environment deserve harsh punishment (I'm thinkin' woodchipper & lemon juice). That's something the Legion did right, in theory if not actual practice.
The price for the Legions beneficent protection? Slavery, sixual domination, death sports and random cruelty. Not worth the price.
Oh, yeah -- honestly, I'm not taking this too seriously. As much as I hate the Legion you svckers are now making me want to run a Legion PC just to see the different content. Buncha buttheads.