I remember people trash talking quite often in Quake 1. Hell, I used to see people on MUD's trash talking and guilds going to war over it, or someone getting ganked after trash talk, then madness would descend on the central cities, with high levels roving around killing each other and junking hard earned gear. No doubt Ultima Online players would note the same sort of thing.
I notice it more in competitive games more than any where else. You'll find that a vast majority of the best players of competitive games are very young and have a low tolerance for losing or such.