Ultimately I want to have fantasy virtual reality as real as Matrix with magic and all fantasy creatures. NPCs should be alive. So alive that I could move there and have even own family there. So your question: Yes. But I'm not psychopath, just omnipotent God of virtual universe. What do you think people with power like that would do? I don't know but I surely would like to know.

But topic is interesting. Take any modern fps and think how many "people" you have killed in there. Would you really play those kinds of murder simulator if NPCs were alive? I think not. Besides fps are little more than Tetris. Click click point and react there etc. They are very simple concepts.