Very rarely do people actually show a character that was mentally affected by the war they were in. Almost no one gets away from a war without suffering from some kind of PTSD. We hear about this stuff in Iraq all the time. How would any of this fit into a slightly less than Modern game though? Well, Post Traumatic Stress is not a recent thing, and there is evidence that soldiers in wars across history were affected by it. I'm pretty sure I would have it worse than I do now if I were told to be in formation and slowly march at the enemy force while bullets and arrows are flying past my ear, as the person next to me takes an arrow/bullet and falls to his death beside me, as cavalry is called charging into the unit right beside me, as body parts fly everywhere and blood flows from every corner of the battlefield, as you listen to the agonizing screams of those near you that haven't yet died from their wounds. One of them might be your best friend that is screaming at you to end his life because the pain is too great, and this is while the enemy across the field is preparing another volley or getting ready to charge with spears or bayonets.
And all of that happens usually for one of three reasons or a combination of these three reasons. 1) Resources and Land. 2) Survival of Nation or Religion. 3) Leader of (insert country here) said King's wife of (insert country here) looks like a cow. That's war.
Most RPGs have towns getting taken over with a few soldiers and a banner or two by the evil empire that's after the crystals instead of anything of real value. If a current or previous war affects an individual character, they either lost their house, their dad, or their eye and is never explained how that loss might actually affect any of those characters. That's not really war, and is not that interesting.