I would have to dissagree, there is more to being "evil" than just being selfish, I actualy think that how you a achieve your goals is more important than what your goals are when it comes to morality, in truth if this weren't the case there would be very few good people indeed, since most people are at least partialy influenced by selfish goals. And driving outsiders from your home isn't really a very good goal to begin with, and it is kind of selfish as well since it's what Dagoth Ur and many Dunmer want but it is actualy AGAINST the desires of every other race, and diversity of races, unity and all those things that driving foreingers from Morrowind would deprive Morrowind of are a GOOD thing, some Dunmer dissagree but that's because they're idiots, or they like to be the ones to rule and Morrowind being part of the Empire doesn't allow them that power, although I wouldn't call them smart either, and besides, what is good and what is bad must be decided by what would be beneficial to majority of the world's population rather than a minority, and having Morrowind as an Imperiel province is beneficial to most people in Tamriel, some Dunmer might not like it but Dunmer aren't the only race in the world, neither is their population greater than the combined numbers of other races. Goals that involve changing good things for the worse are bad goals to work for.
Being able to start long debates about a villian's morality is not really what makes me like a villian, I like villians with motivations that seem plausible, it's even better when the motiviations are not at first apparant yet once you know them are still ones which seem like something a real person might actualy act for, and means of achieving their goals which make an interesting story and give a reason for the hero to want to stop them, as well as give the audiance a reason to want the hero to succeed, a good villian should have a good, complex, unique personality and a voice and appearance that fits his role, a villian should also have concerns other than acomplishing his main goal, he does after all still have emmotions and all that, he should also be motivated by the same concerns which may motivate the hero. A the morality of a villian's goals are not so important so long as these requirements are met. Dagoth Ur was kind of good in the first too, though they really should have put more actualy visible evidence of his actions in the game in order to make the player better able to apriciate the impact of his action,s and he seemed pretty lacking in the latter parts. Especiely personality.