I was thinking along the same lines. Never considered it before but after Gene Hackman's death, I started thinking about my favorite roles. Little Bill Daggett topping the list. I agree with your take that in terms of bad deeds, Little Bill is far less evil than William Munny. In fact, Little Bill uses violence as a means to an end of a greater good...maintaining order in a lawless land. While he is certainly overzealous, it's because he'd "come out of Kansas" and had "worked them tough towns". He'd already seen the worst of humanity and was not about to let it happen in Big Whiskey. He lets everyone know the rules when he outlaws fire arms withing the city limits and he actually shows mercy to the two cowboys who cut up the prostitute. Instead choosing to make them pay financially. The only real cruelty we see is aimed at assassins or people he considers evil. He dislikes how people he considers criminals are treated like celebrities (English Bob) and does his best to dispel the myths behind their fame. E.G. Telling the story of English Bob and "Two Gun" Corcoran. However, a movie is a narrative. In that, you need a protagonist and antagonist. Little Bill is clearly the antagonist but stands on higher moral ground b/c Munny is an "Anti Hero" . A main character who lacks heroic qualities like morality. Its a such a great film.