Relius is just as feared by the people who know of his existance as Terumi, maybe even more judging from how Rachel ( get out and escape ) and Jubei ( seems aggitated and somewhat intimidated ) react from him.
Relius is clearly more saner than Terumi, who goes on a rant about how humans are stupid and how the time loops repeat again and again and again....
Just because you are insane dosen't mean you get a free pass out of being a good person. Is the Joker an angel? pretty sure he's crazy.
Honestly maybe they are both just henchman under one boss. This series is gonna get complicated and it's gonna go on like King of Fighters just watch.
Being crazy isn't a free pass, but it's a huge hinderance to being good. If someone's mind doesn't work right to begin with or has crashed from events surronding them, do you expect them to still have a clear moral compass? After what, a few thousand time loops of so I'd bet even the most moral person would crack eventually and be just like terumi. Now it takes a special type of person to be a Relius though.
Hm, a being that controls both of our current villains? I'd hate to see how powerful that guy can be.