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I believe alignment breaking punishments should be as IC as the act that broke alignment. If a priest of love murders someone in a fit of rage, you can't just delevel him and say its ok for example.
This is a good point. There's a difference between characters who act outside of alignment over extreme IC stress, and those who break it lightly for OOC advantage.
I'd agree that such cases call for IC punishments instead of OOC ones - blemishment, in this instance. The HP/HF can restore him when they feel it appropriate.
I don't want to apply IC punishments to the other group. These are characters who are breaking OOC roleplay rules, just as surely as if they created an elf who marries a deep-elf. Further, making atonement-quests is way too much work for the immortals, who have other things to do besides play enforcer.