At the risk of sounding twisted and deranged, how awesome would it be if we would actually hurt and kill the children in this game? Killing a child would impact your Karma/Rep much more than killing an advlt. It would definitely add a whole new level to being a bad guy in the game. Around the city you'd be known as the child killer or something along those lines. Instead of fearing you, people would be disgusted by you, they wouldn't run away from you, they would attack you because you're so evil.
Basically, I'm saying we don't need to have a straight line of good and bad, there are tangents you could take. You could be the good guy with messed up morals, or the bad guy who has a good heart.