The (philosophical) question is one of affect. MMORPG's in particular are designed to create a strong sense of attachment between avatar and player - how else will they convince you to keep playing? While it may not seem important to an outsider, to a player, the 'expensive armor' and general appearance of a character creates a sense of attachment known only to its controlling player. As such, a traumatic break of this bond can have a corresponding psychological effect on the player. So yes - humiliating, executing, public shaming of a player can have significant effects on player and as such, we should consider the moral implications.