I think that "realistic response" actually makes the situation worse -- you are actually rewarding the player with spotlight for doing naughty word things.
Worse and better are relative terms, defined by your objectives.
My objective, as a DM, is to create a great experience for my players where they all feel engaged, immersed and enthusiastic. You can have amazing stories that involve a really bad person. Major archetype stories require the hero to start off as less than a hero (redemption, for example).
My session zero includes the requirement that the decisions they make as players and characters can't be offensive to another player. A PC can be offended, but not a player.
If you're going to do things against the interest of another PC, the players need to have precleared it. This includes things like the party rogue stealing from a town as the entire party may take a hit if the rogue is caught. However, I often hear from players that it is fine for the rogue to do whatever the player wants their PC to do, and when things arise out of immoral, unethical and illegal activities by a PC - we can usually fold that into a good story.
I also ask the PCs to think about goals or stories they want to explore and give me some insight into them. If a player just wants to be an %$!#@ for 20 levels, I encourage them to consider that there is more they can explore and then I give them opportunities to follow a more enriching storyline. However, I do not force them to do so, except to the extent necessary to keep them from upsetting another player.