I have used Buddhism in a fantasy setting that rewards experience points to resolve conflicts not using violence as an alternative. The roleplayer can however, use self defense methods, but not violence to overcome an opponent. The experience was wonderful as the interested roleplayers used the "Eight Fold Path" to live a life unusual then what most tabletop campaigns offer. For a fantasy setting, I didn't use the name "Buddhism", but called it something else that resembled the belief system. It can be done, but watch out, as I have experienced roleplayers that are violently against "pacifism" for they see it unrealistic and undoable in a game. Some even consider it a boring campaign, as violence for them is most rewarding. I think if you can provide different aspects and possibilities to open doors for roleplayers that have different personalities and ideologies of what a good campaign entails then you can get a larger crowd of players interested in what you offer on a game. I plan to have "pacifist" character choices available for those roleplayers that seek different challenges in a campaign.
Since I know you are a huge fan of the "Elderscroll" series, have you ever tried to play a game to where you avoid fighting at all costs by doing errands in the game that had nothing to do with violence? If not, try it one day! Not easy, but interesting! I have done it many times with Morrowwind, Oblivion, and now Skyrim.
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