On a side note, who actually says the Undead are bad guys? Or for that matter the Uthuk Yllan? Correct me if I am wrong, but aren't the Daquan Lords killing the Undead and Uthuk Yllan, to the point of hoping to exterminate all of them once and for all? Are the Undead and Uthuk Yllan not doing the same thing that the Daquan Lords are doing, albeit in there own way?
I always laugh when I see this conversation of good guys vs bad guys... if your on one side, don't you always believe your a good guy? Do you think the Uruk hai in Lord of the Rings knew they were evil? Or did they think they were fighting human monsters according to the orders of their boss and to survive? Just like Human and Elven knights fought Uruk hai according to their orders and desire for survival and to be the dominate races.
The Undead are bad because the Runewars boardgame had 2 good factions and two evil factions. The Undead and Uthuk were evil while the Latari Elves and Daqan Lords were good. It's not opinion; it's symbolized right on the faction sheets. There isn't any ambiguity as the world is currently constructed. In other fantasy realms, sure, the elves can be evil. In fact, there are evil elves in Descent (same world). But I don't think those evil elves are allied with the Latari. So the named factions are split cleanly into good and evil.
Dunwarr Dwarves and Orcs of the Broken Plains appear to be neutral, but they sided with elves and humans during the 2nd Darkness.
The orcs are indeed neutral, and they only allied with the humans in the second darkness to save their own skins. And many orcs worked for the dragons anyway. Dwarves lean toward the good side, so long as they aren't expected to do anything for anyone.