@blackraven - You've scratched the surface, but with respect I don't think you've fully understood what I wrote. Let me say it a different way. Trying to apply Pathfinder definitions of good/evil/law/chaos to real life - or vice versa - is futile because Pathfinder is not real life. Such attempts are a disservice to the gaming experience in my opinion.
I agree with what you've said...we all are going to interpret Alignment in Pathfinder slightly differently, and our preconceptions are going to color our interpretations. That's the gray area I spoke of. I just think your response is not in line with what I was actually saying.
So far as "optional" rules...aren't they all optional? :) I feel perfectly OK with bending, modifying, making my own or flat out ignoring any rule if a given circumstance warrants it. GM discretion... I just try to be fair and balanced and make the game as enjoyable as I can for my players. That's the role of a GM, no?