This Mortal Kombat video goes into detail about the process of creating fatalities. Of course Mortal Kombat has been refused classification in Australia, and most of us haven't been able to play it, but what this video really illustrates is just how impotent fatalities are. They're essentially an adult, advanced replication of games you would play as a kid, pretending to die in the most bizarre ways possible.
I really enjoyed this video, just getting a background on the process - where the ideas come from, how they're implemented. It completely takes the sting from fatalities in general, and shows them for what they really are - a harmless bit of fun.
Thanks to VG247