Thwart the Idea of Bad and Good
By Ross Kugman.
In the history of things that I have seen, usually in world-making (myself being a lore maker), is destroying the very concept of "bad vs. good", and making a more "dangerous vs. balanced" or even "balance vs. too conservative". In any case, it is removing the idea that there are those who are pure evil and fundamentally backward.
When you look at Lord of the Rings, for example, you'll notice that the orcs were not "EVIL, BOO, I SCARE AND KILL YOU", but were, "We've been locked in the mud for far too long! It is our turn to prosper!"
In my lore (of which probably no-one has heard of) there is a Demon capitol city. This does not mean that it is a place of shadow and gloom. In fact, the city and nation itself is a democracy, and in fact more advanced than the races and other alliances that seem to be "good".
The humans, who you see mostly as being good, are really desperate missionaries trying to claim the lands in the name of their holy-God's. They do this by force, whereas the demons try to convert by rallies and invitation to events.
Even when you look at present day events in OUR world. The terrorists (from an American standpoint) who threaten our everyday livelihoods aren't doing it because they're EVIL, they do it because they believe in it. Just as to them, we are the evil terrorists bombarding their land with bombs and such.
So, in this, you must have every nation or faction (etc.) as not good, bad or neutral, but as a nation striving for what they believe in. Because good and evil are ideas, not natural happenings.