@Linkat,
I imagine you and I have very different parenting styles.. and I am sure that your child/children came out as well as mine did. I have raised three kids who are now decent, happy human beings between the ages of 15 and 31.
Kids encounter the complexity of life pretty early. At the age of three kids learn to lie. At the age of 5 they have figured out that sometimes they
have to lie to protect themselves or others. By the age of 9 they reach what Kohlberg called "conventional morality", where they know their parents are sometimes full of **** (my phrasing not Kohlberg's but that his idea) and are able to negotiate the often difficult line between right and wrong on their own.
I agree with you about being an example. This includes being honest... and letting kids see your own moral stumblings.
Kids have to learn to live in an imperfect world. We protect them to a certain extent, but I didn't shield my kids from reality. If you shield kids from living life, they lose the ability to grow as human beings.
I don't think I ever gave my children moral absolutes (at least I hope not). Rather, I discussed issues with them and encouraged them to figure things out on their own. When my kids were nine, they were fully capable of disagreeing with me on moral issues. I was happy about this.
My kids are all great, but they have taken different paths. My eldest is perhaps the best person in the family. He directs a non-profit. My second son recently got back from serving in the Army in Afghanistan and is now in Police Academy (i.e. the educational institution to join law enforcement rather than the awful movie franchise). He is much more focused on honor and duty. My youngest (currently in high school) is far more politically liberal than I and is very involved in social justice issues.
I couldn't be more happy with any of them. Kids have to live in a complicated world, they are capable of figuring it out.