You can kill, but you're forced to dispose of the bodies to prevent some routes becoming even more annoying with ghosts (BTs) or a possible game over triggered by whatever condition the game finds around that area. In 2 they added an NPC that constantly reminds you that you shouldn't kill people lol.
Discussion
We shouldn't be calling it "DS" then lol but I didn't think game over was even possible, I thought it catered for Beyond Two Souls kind of game players