"I'm not trapped in here with you, you're trapped in here with me" is THE iconic Rorschach line, yes he is very much the villain
Same with "They shout 'save us', and I whisper 'no'."
It's not subtle or subtext in the slightest! In fact, it's very much text in the story! None of the Watchmen are good, that's the point - and it was during a time when such "Perhaps superheroes are...bad?" was a novel story concept, but now it's a dime a dozen that even the OG heroes they're based on go through the same arc every few years or so