I kill off 'bad' characters and Thalmor, as that is the name of the game...undead don't count, as you are actually doing them a good deed and more or less switching off their power (they are already dead, you are just making them lay down and accept it).
I don't rob or steal, or trespass, although I do loot...hey, I might be good, but that dead bandit sure doesn't need that 'axe of 500 septims', does he? I don't deal with the DB, nor the Thieves...and if it were possible, I would take them all out.
Having said all that, I will occasionally do the wolfman thing to rip up a bunch of dudes, or to run around a town scaring little kiddies, but I then reload a prior save...gotta have some 'fun' occasionally.

