Since I just had cause to link it in another thread: the infamous
Oblivion LARPing article is not actually that cringeworthy in retrospect; it's just people using their imaginations and creativity to get the most fun possible out of a game. Of course there's a lot of comedy in how the ideas in the article are so intricate and convoluted, contrasted with how the game is so simplistic and unreactive and thus how the roleplaying ideas are entirely fruitless, but self-imposed rules and playstyles like this are at the very heart of roleplaying games (and, arguably, computer games in general).
Deciding that you're an assassin/pacifist/racist/coward/secret Telvanni agent/etc and then playing accordingly is just good roleplaying and will enhance your enjoyment if you commit to it, even if the game itself doesn't give a shit about anything you're doing. There's a reason a lot of older cRPGs offered an empty "Biography" section for you to fill in during character creation.