The binary choice of siding with the refugees or the goblins is fine by me.
The problem in my opinion is the choices you get before getting to that point. And the choices after it.

IE sparing the tieflings, but sparing them after robbing them blind.
You could say they become my servants, I spare their lives if they spread the word of the Absolute in Baldur's Gate.

Or some other contrived way of just not being a dumb murder hobo.