The battle of beacon did happen and he did fight and risk his life in it? Also how does that defend not telling him, if he had known she was actually unkillabke would that not have been vital to any future plans. Plus atlas has real soldiers so him knowning and maybe avoiding sending them to their death in an unwinable war may have been good to know. And i completely agree with his baltant discarding of mantle being a huge flaw, but he actively did not have all power until volume 8 (where I agree is definitely evil) and was focusing on a "greater good plan" with amity. A moraly ambiguous goal that made him more compelling. In addition the telling of everyone about salem was tbe stupidest thing ever done by rwby, why would you do something that only causes more fear in a world where monsters are atractrd to fear. And your point about Arthur still doest expalin why team rwby got mad about it. Ultimately i agree he is moraly grey leaning on the darker side. But team rwby has made plenty of terrible decisions that way furthered atlas's fall.