We are all going to handle that divide a bit differently in our games, but I think it's worthwhile to do so mindfully and not use the game as an excuse to act out in ways we wouldn't in the real world.
I don't know of any of the players I have played with that role-play as themselves. They don't want to act the exact same way in a game as they do in IRL. They choose an alignment and a race and a class and a background with goals and flaws and all the rest that would have them act differently than the person they really are. They are playing a role.
As a DM, moral dilemmas are one of the tools I use to challenge players, to see how their characters would act. I want them to be mindful of what they have their characters do, what choices their characters make. I try to have my NPCs act within their character, and if that means they are smart and cruel, then cutting off the horns of a prisoner is something they might do. I don't hold players to making choices based on alignment; their characters are dynamic, and change and free will often make great narrative. I don't think less of a player IRL whose neutral character makes some morally troublesome decisions. I reward him with Inspiration. The game is an excuse to act differently. It is a fantasy game, a role-playing game that has characters and creatures that will do things that are sometimes good, neutral, or bad.