I was reading this article and a couple of hundred comments...
Yes, all of my characters are evil, so I don't mind the "Torture" quests. Yes, as a person, I thought they were bad. I even got a funny feeling about doing them.
The thing is, no matter what cookie they offer you at the end of the quest chain, it won't be worth anything at level 80... Please skip those quests if the offend you so terribly.
On the other hand, I don't think those types of quests are needed in the game, however, if we are going to question morality, then there are a whole bunch of areas we could fuss about. One example would be the Warlock Succubus, who exclaims serveral questionable comments during the course of her use. My GF, said that she wouldn't even let the kids have that pet.
I don't know if a line has been crossed, but there are so many refrences to questionable things and of course there is supposed to be humor there. I can see many things being offensive to other people, that I take as being funny or cute.
Thanks, move along.