Renegade is it's own reward.
Half serious btw. Although I do think Renegade is cooler and funnier. It's fun to play. I can't stomach some of the stuff Paragon says.
I generally like playing goody types in many games, but there's something about the military angle mixed with Paragon that turns me off. Too Boy Scoutish and square. I'd rather avoid that, even if Renegade isn't as rewarding.
Yet the age-old ME debate is back in play here... Renegade ISN'T its own reward. Renegade is a punishment.
Or, at least, the price you pay for funny lines is that you get worse outcomes - dead companions, lost quests, less dialogue, worse choice results, etc.
What people are complaining about in this very thread shouldn't happen to players who make "good" choices is exactly what has been happening to those players who make "bad" choices, Renegade being a pretty good example. I doubt many would say their choices in real life always work out for the best, regardless of their intentions. Why should a player be able to guess with a high degree of accuracy the best choice simply based on the way the choice is framed in the scheme of morality?
I think a good example of how this can be done better is in Wasteland 2. You are given choices - go save two locations that your enemy is attacking simultaneously. Whichever one you choose irrevocably means the other is destroyed. You actually hear the people you didn't save die over the radio. There is no morality in play, it is simply a choice. A tough choice. I can make logical plot arguments about why I chose it, I can make logistical arguments (as in more XP, better rewards, different companions, etc.), I can make ethical arguments about my choice (as in defenseless civilians should be saved over those who are equipped and trained to fight)... but I don't know going into it which choice is better before even making that choice. Usually because the choices are actually fairly balanced in their outcomes AND because there is no clear cut "good guy" path.
That's a realistic choice, in my book.