That's why she only got 10 votes in the "most despised" poll and Mehrunes Dagon got 14. There are different ways to interpret Azura's actions.
Some say that the "curse" was just giving the Dunmer an identity, but the fact remains that she did it out of spite, not benevalence.
Some say the destruction of Vvardenfell and all the death that occurred when that happend was a necessary consequence of ridding the world of Dagoth Ur. I am no so convinced that there was not another way.
Then there are her actions in Oblivion, where some of her followers contracted the vampire disease when fighting an evil vampire. For their trouble they are locked in a cave for years and then instead of trying to cure them, Azura just has the Champion of Cyrodiil go in and slaughter them all.
She is not a black and white character, which I find compelling. I consider her evil but the question of just how evil she is may be open to some debate.