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I'm sure there will be good and bad endings, wasn't it said that beating up townsfolk would have 'servere repucusions later on in the game'?
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I think that was just that in the next town you go to the townfolk are not going to be very helpful and possibly even agressive.
Maybe you need their help right at the end (like abe needed the muds at the end of AO) and thats how the bad ending will work.