I guess it all depends on what the dio is trying to depict. The heat of the battle, with one side gaining ground over another, there will always be dead or dying to depict that action. I remember seeing a magnificent Zulu wars dio many years ago. It depicted the Zulu warriors attacking the British at Rourke’s Drift. No way that could have been done without dead and dying people. The dio was a tribute to the courage and honour of the VC winners and also the zulu warriors, not a tribute to the slaughter of people on both sides. There were no mutilated corpses, etc, So I guess you can say it was ‘tastefully’ done.
I have seen many other dio’s with dead soldiers, WW1 trench scenes, teutonic knight battles, etc and a Apart from the ‘Monty Python and the Holy Grail’ Black Night dio (by nature more comic than gory), all were tastefully done without missing limbs etc.
Most Armour builders do not depict action scenes, as it is very difficult to represent dirt and dust thrown up by advancing vehicles. Our figures are generally crew at rest or the like or crews firing at some distant ‘enemy’. Same goes for the flyboys and ship builders. This is really an area for figure guys and some armour dio guys.
In reality you are going to see far more blood and guts on the ‘big screen’ or the TV than you will ever see in a military dio. It is the theme behind the dio that is the point of contention not the figure content. As Larry has pointed out, there are some things that moral standards will not allow most human beings to accept such as Malmedy, etc.
I have no concerns with modelling SS vehicles, etc; They are a part of history. However, I would not consider doing anything other than representation of the vehicle, not the principles behind the organisation or the ruthless tactics employed by some of its members. If I was really that concerned about Facism or National Socialism I would not do a German vehicle at all. I depict history not politics. The same thing could be said for modelling the Japanese vehicles or figures - just ask an Aussie Digger about Changi prison or any of the slave labour camps. Jjust remember though, the Allies were not squeaky clean either. As they say "history is written by the victorious’.
All people have their own views and some will take a more conservative view than others. Tasteful, is a word defined only by the individual viewer. Personally, dismembered bodies serve no purpose other than a ‘wow’ factor I can do without. But a dead soldier in a dio, tells a story, and a message we should all remember - War is hell. Yes we model vehicles of war, yes we depict scenes from history, but do we want to depict attrocities? I think not.