Let's take this from the perspective of the serial killer. The thought enters his mind that he should go on a mass murder spree. He knows that he has no free will, therefore it is not really his decision whether or not he acts on this thought, so he is more like a casual observer who just watches himself act on this idea. He brutally murders 50 people, shattering scores of lives. He faces the consequences, just as you said, but so do all of the thousands of people impacted by his act.
Your system of morality of consequences is not better because the consequence is not a deterrent if you see it as inevitable. Your system of morality is much, much worse.
There is no "self" either in the way you describe.
There is no one observing anything. The actor and the observer are one and the same. The conscious and the subconscious are all part of the same thing.
I need to go soon, so i don't have time to further elaborate at the time, but I do have to bring up two points. First, we're talking about the nature of the world. It is what it is. If that does not make for satisfying morality, and I do think it does, then that's what it is. I'm not interested in believing something simply because it makes me feel better. Second, like I said before, subjective experience remains the same. Knowing that we have no free will does not change the fact that we feel like we do. We will still experience the world the way we do now. A serial killer can "choose" to/not to kill. No free choice was really made. His brain reached the choice thru its physical structure (shaped by history and genetics), and the choice was made known to the conscious part. What matters is that society in general do not want people killed, and will work to stop that. I don't see why belief in causality-transcendent animals are necessary for that.