we don't actually know what the Dark Urge is yet, do we really know that it's a serial killer/bhaalspawn?
He's compelled to do evil things because he hears voices or whatever. Sure, there might be a cause. Maybe something that could be combated or fixed entirely later on. Swen did say you could become a sort of hero even as TDU, so who knows.
But you rolled a schizo not so that you could see a few different cutscenes and make sane choices every time. It was so that you could
roleplay being an actual violent lunatic.
(i actually think amnesia is the lowest form of writing, btw - very cringe method of exposition if you ask me)
Depends on why it's used and how. The Nameless One, for example.
In general, it's bad though, yes. E.g., the first Witcher game.
has it been said why you create a character you dream of after you're done with yours? inb4 the dark urge is somehow related to that
It's an effect of the tadpole, or whatever special magics that have been worked on it. The dream avatar is (basically) there because of the tadpole (even though it's not the tadpole itself, apparently). So, now that it's in your brain, you hear it in your head asking you what the perfect avatar you'd actually want to listen to and interact with would look like.
I assume TDU has a similar mechanic that may or may not be related, but I don't know.