Sadly, I've never read that. What is his realm like? I can only find references to what happened, but not to the actual realm.
His other side is a series of punch lines. That isn't just "less obvious". All i saw of his dark side where the likes of "Ta! Come visit again! Or I'll pluck out your eyes." Just a punch line. What I wanted to see where worshippers going insane and killing themselves, random destruction of towns, and general terrible things.
If you actually look at pre-SI, you'll find that sheogorath was frequently seen as evil. He threw the ministry of truth at vivec, briefly played a bad guy in Azura's quest in Morrowind, and created the staff of everscamp. Neither where good deeds, and all where fueled by insanity. None of this funny joke cracking stuff.
I'll answer that with the following quote:
Daedric princes are never evil, since they don't follow mortal values. What you wanted to see is not what Bethesda, the creators, saw. There is clear insanity in Sheogorath, the Isles, and there are general terrible things. The whole main quest was full of terrible actions ordered to be completed by Sheogorath. Although, speaking of people going insane and killing themselves, the guy who exited the Isles fit that bill, as he obviously went insane and performed an action that resulted in his death. Do you remember Hirrus Clutumnus and the hill of suicides? Also, Sheogorath isn't the Daedric Prince of destruction, Mehrunes Dagon is. The Isles aren't in a state of peace and Sheogorath isn't a good guy in SI.
The Staff of Everscamp was created for Sheogorath's enjoyment, just as several other things are. He had many dark quotes which, while being funny, showed a cruel side. The state of his people and his laws show cruelty. The torture in his realm(Xedilian, Syl) and the torturing he has you do(Syl's quest, the torturing of the adventurers who found Dawnblade/Duskfang) clearly show torture and an "evil" side. Sheogorath was represented perfectly because that is how Bethesda created him and that is how he is. I can't change your opinion, and so I will stop arguing over it. I apologize for arguing too much over this, and I will cease arguing.