Messed up? He is going to give everyone their dream world, just like the Pyramid things in the Pendragon series, and they will go happy go lucky about their daily lives. Of course, most of the shinobi world doesn't see it that way, so they reject and resist his plan for world domination, since he will ultimately be in control of the genjutsu.
And doing what you think is right, regardless of whether it's 'evil' or 'good', is the nature of a solid person. Itachi did what he thought was right; the guy could see alot of things, but what Sasuke turned into he couldn't have forseen until Itachi knocked Sasuke down another notch right after the Chunin Exam events. Rares could be considered evil by plently, but arguably, he could have also been considered pretty darn good for an Uchiha of great power.
But as you say, it's in perspective.