Your number 2 is based around cultural, not species differences. Two humans raised in two different cultures could end up very different.

There could be two tribes of goblins. One that began eating people out of desperation and now just do it because it’s tradition. The other could have grown up in close relationships with their nongoblin neighbors and are seen as a valuable part of their region.

So untying evilness to their race isn’t being race blind or pretending people down have struggles - it’s removing the shoehorning that occurred.

I use to spend so much time on there as a kid. I had a flashback as soon as I saw that avatar.

I mean… he won that one. I’d congratulate him on a well played feint as I died from lack of care.