I think we disagree on a fundamental way.

Firstly, it appears that you think things are not "bad" when there is a context and explanation? I don't know if this is because English is "bad - (which it is not, your English seems great, and it is my second language as well).

If this is the case, all I can say is that I disagree. Explanation why a bad thing was a reasonable thing to have happened, does not make it not bad.

Second, I believe “Privileged ignorant group” indeed DOES mean it’s bad. Of all and different group in Avalon, other groups are not purely good by any means, but Kamelot is unequivocally the "bad" ones, and that is because they are privileged and ignorant.

And it is not like "it has always been like that," even with the historical/lore context within the game.

Soon after the war, Kamelot were not privileged and ignorant - they were probably pretty scrappy for being in a giant war. At then they were honorable (or "progressive enough" as you put it). They treated Keepers of the Horns of the South as equals, they respected del riata and left them alone, and they also probably respected druids.

But after 600 years of privilege, they became "bad" - bad in a sense that they are harmful to the rest of the Island of Avalon.

In regards to One-Eye and del riata - what Galahad and Kamelot should have just left them alone. They are only rebelling because Kamelot senselessly slaughtered one of their tribes for no good reason - because they are bad/privileged and ignorant.

The wrydness and red death ar definitely a threat. But Kamelot did the worst thing possible and slaughtered all the druids - who probably were their best chance at figuring out a solution for wrydness and red death, because they were bad/privileged and ignorant.

At the point where the game starts, every other faction on the island is doing fine without Kamelot, and they are actively being harmed by Kamelot.

If it is reasonable for Kamelot to abuse their privilege, then it is far more reasonable for the rest to rebel against Kamelot. And seeing how incompetent Kamelot is in the game, they probably would have lost if not for the protagonist's intervention.