To anyone, and especially to kids, this game - like too many others - gives the impression that conflicts can ONLY be solved via violence. There simply is no social interaction. None between NPCs and PCs whatsoever, apart from "quest giving", and there is no actual Diplomacy at all.
In this game, Diplomacy works merely as a skill that reduces monster hate, so to say, but nothing else, which gives a very shortened view on what Diplomacy actually is. Same goes for the other few social skills DDO has. Every social aspect of the rules set has been tailored to fit into the needs of an Action-RPG, which DDO actually kind of is (at least it fits into that formula, apart from having a few strong non-fighting skills like disarming traps), and that's why I view DDO and most other MMORPGs I know of as "fighting games".
(Personally, this is why I moved away from Action-RPGs and from "traditional RPGs" in general.)
In general, I do not like the shortened view that "all conflicts can be solved via violence". To me, this is a very shortened view on what society actually is and can do. Conflicts can be solved by a lot of other ways, depending on the sort/kind of conflict. "Home Sweet Sewer" is - as far as I can see - the *only* real example within the whole game teaching a non-violent way of solving a conflict. Oh, and perhaps "The Faithfully Departed", too.