He definitely is a villain, at least serves as one of the final bosses, together with Dallis and Braccus, that's out of question. It's that I don't know if there's any evidence, that he knew about the Elves and if it was the Shadow Prince, who told him. If there is such evidence (I have yet to solve the Levers puzzle to get to that point, the puzzle itself isn't hard, but the damn Source Puppets keep spawning, if you don't beat the initial four fast enough), then I'm not gonna arguing about it.