The Problem with Paladin Villains (spoilers for SoD/GDGU)

[Dion]

However, for a famous example from comics, there's Rorschach from Alan Moore's Watchmen. Clearly intended as an anti-hero and portrayed as such in the story, some readers still think he is a hero.

Remember, you yourself said there are three value systems at play. Alan Moore wrote Rorschach as a fascist, and Alan Moore clearly believes that fascism is not a positive value.

But Alan Moore’s readers are free to have their own opinions of fascism, and treat Rorschach as a hero if they think fascism is a virtue.

Same thing is true of other similar characters, like The Punisher.

I’d even argue that in the value systems of his world, a fascist characters like Judge Dredd is a paladin.

(Admittedly, all I know about Judge Dredd is the recent movie.)