Ah yes, alignment, that was what I was thinking of. It mostly effected your combat choices, but yeah it did effect whether you got ending #1 or ending #2.
Originally Posted by JDR13 
I'm pretty sure all the later titles had some choices that weren't combat related. As far as joining a faction though, the closest thing would probably be having to choose your party's alignment halfway through M&M 7 - which significantly effects your party options from that point as well as the way the game ends.