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Heroes get boring pretty quickly if they don't have flaws. Vices are a way to give a tangible reward for role-playing those traits.
Virtues and Vices are a simplification of Blue Rose's Light and Shadow Natures. In BR, even the most "light-aligned" character has a Shadow Nature--the temptation is always there, even if you always resist it. In desperate circumstances, even a pure-hearted hero can fall from grace in a moment of weakness. In game terms, if you need more Conviction, and the situation makes your Vice much easier to fulfill than your Virtue, it can be very tempting to give in and do so in order to accomplish your goal. (The road to Hell is paved with good intentions...)
Remeber that choosing 2 virtues is only an option. You may choose a virtue and vice no problem.
This houserule was thought for players I frequent that due to their ethical believes may not want to be "rewarded" by inmoralities. But of course this is just a game where the point is to have fun. I only wanted to give those players, and myself, an option.
It need not be an ethical dilemma. Some of the Blue Rose options are 'Indecisive', 'Excessivly Nostalgic', 'Stubborn', 'Complacent', 'Overzealous', 'Impatient', 'Narrow-minded', and so on. All of these can usually lead to less desirable outcomes, or annoy people, but none are unethical behaviors.