In running my Dwimmermount campaign, I've tried very hard to impart a swords-and-sorcery feel to the whole thing. One of the subtler ways I've done that relates to the presentation of morality and alignment. As I've explained previously, the campaign setting postulates a primordial war between Law and Chaos, with "Law" being equated with the forces of mortal civilization and "Chaos" being equated with forces of otherworldly destruction. Thus, while Chaos might be called "insane" or at least "irrational," Law encompasses both good and evil components, as anyone who prefers the orderliness of civilization over the howling instability of Chaos would throw their lot in with this alignment.
A good case in point is the religion of Typhon. Typhon is one of the main deities of the City-State of Adamas. He is a god of law, order, judgment, discipline, and trade; he is also quite evil by most understandings of the term. However, because his faith inspires rulers, judges, soldiers, and merchants to channel their self-interest in defense of civilization, he is generally seen as one of humanity's main patrons among the gods. Typhonian clerics are among the foremost exorcists and demon hunters and undertake missions of extreme danger in the war against Chaos. Nevertheless, Typhon is not a "nice" deity and his church's teachings are cruel and unforgiving. As the players will discover, there's a powerful disconnect between Typhon's ethical philosophy -- which might be simplistically described as "Nietzschean" -- and his followers' role in protecting humanity and its allies from the depredations of Chaos.
In a similar fashion, the City-State of Yethlyreom is ruled by necromancers and whose armies, constabulary, and workers consist in large part of mindless undead -- but Yethlyreom is every bit as much on the side of Law as is Typhon. The ruling necromancers have effectively made a deal with the Devil, employing Chaos-tainted magic in order to "fight fire with fire." This practice began out of desperation in the past but has evolved into an orderly, almost scientific approach to death, dying, and the afterlife that has served the city-state well, even if it sometimes results in one or more necromancers succumbing to seduction by Chaos. But, by and large, Yethlyreom is a peaceful, justly-run city whose inhabitants know that their rulers do what they do to keep them safe from worse horrors. It's not pretty much of the time, but who said fighting Chaos would be?
Both Typhon and Yethlyreom serve to highlight the campaign setting's difference from less nuanced styles of fantasy, where good and evil form the basis for the cosmic conflict. Good and evil aren't absent from Dwimmermount by any means; people still think and act according to such notions. What's different is that, because the cosmic conflict is between civilization and those who would tear it down, good and evil are often arrayed on the same side. Chaos is utterly alien and inhuman and against it both good and evil sometimes must lock arms and stand side by side. For myself, I think this introduces a level of moral complexity that leads to good roleplaying and that feels true to swords-and-sorcery literature.