There's a really good thread about OC play (Vincent calls it sim) on Anyway.
It's worth reading in its entirety but you only really have to read up to post 20 maybe to get the gist.
The social reward/cohesion in OC play is about affirming the rightness of a character. You show to the other person that you 'get it'. Having the wife call out the PC's actions is 'not getting it'. Then you have a genuine aesthetic disagreement in the group, how do you resolve it?
If I was doing OC stuff now. Then I'd just concede to the player. The GM is playing the wife wrong and should correct based on the players conception of her. The same with the Bugbears, concede to the players.
Contrast to:
In Narrativist mode, screw the player, the wife is mine (The GM's) and I get to say what's what. There shouldn't be an expectation of the GM playing her in the way I've conceived her. Same with the Bugbears.
Here's another, more congruent difference.
In oc/sim, Batman doesn't kill and that should work out for him.
In Nar, Batman is making the choice not to kill and it might not work out for him. Maybe killing really was the best option.
Back to the Bugbears. If I think the world we are in should reward my mercy with trust and faith. Then the Bugbears should be loyal. It's less about wanting control and more about our shared moral vision that we're re-enacting.
If a moral choice actually is up for grabs, then we're playing Narrativism and we might not want that.