You can’t escape the concept of the “misunderstood villain” nowadays. What was a subversion is now commonplace and expected, even demanded, even of whole fantasy races.
The problem that I have doesn’t lie in accusations of racism or my objections to other tropes or trope subversion, it lies in one simple fact: That it is more heroic to be good when you are "supposed” to be bad.
Let’s look at one of my favorite modern fantasy movies for an example. In 2016’s Warcraft, an Orc named Durotan, his wife Draka, and his friend Orgrim Doomhammer travel with Gul’dan, a wicked wizard who uses his magic to extract the life force of other living beings to Azeroth, a world that the bloodthirsty followers of Gul’dan wish to conquer. Durotan is not a fan of Gul’dan, but afraid for his clan, the Frostwolves, his wife, and their unborn child who will starve if they don’t leave, he accompanies this warband. Upon arriving in Azeroth, Durotan realizes his mistake in following this dishonorable, despicable orc and plans an uprising.
The alliance of races on Azeroth, (humans, elves, dwarves, and others) view all the Orcs as a threat. Understanding their fears, Durotan, attempts to demonstrate his goodwill and explain the threat of Gul’Dan’s magic which kills the land where he works it. He wants to unite with the races of Azeroth to stop the evil that he inadvertently brought with him and secure the safety of his family, which is all that matters to him. Though his noble attempt ends in disaster, the audience knows that Durotan is a good guy and wants to save and cooperate, rather than destroy and conquer.
Warcraft Orcs are at the least morally ambiguous, if not outright evil, the exceptions being the Frostwolf clan. But they and noble Durotan are the exception, not the rule, and they stand out more because of it. The choice to be good, when you are surrounded by and meant to be evil is an inherently chivalrous one. The modern insistence on EVERYONE being misunderstood or secretly a good guy takes that chivalry away.
Who benefits most from the idea of “all the monsters are actually good”? Those who are actually monsters. Those who hide their evil and malice under a guise of friendship, people like Gul’Dan, who can only be opposed by the nobility of Durotans, Drakas, and Orgrims. To be good in a world of evil is a rare choice, and one that should be honored, but not by making EVERYONE good.