Ah. Let me explain a little of my own experience of this, and you can consider whether this is something you recognize.
These days, it's rare that I have "nightmares." I'm at home with my own imagination; very little in my dreams scares me. The exception is when a dream scenario has me doing harm to my friends or family. When that happens (once or twice a year), I wake up gasping and covered in sweat, literally sick at the very concept of such an action.
I can imagine stabbing my wife to death with a rusty ice pick. Doing so induces a sick feeling in the pit of my stomach-- not like nausea; it's more like falling. Similarly, I have a hard time turning away from people in genuine need; doing so is a wrench, twisting against my own instincts. Physically, it feels a bit like pulling a magnet off a refrigerator (if the magnet's about two inches above my belly button), and I usually feel faintly unwell for a few minutes after.
This is, as I said, interesting, because I have the same emotional response to the idea of causing harm to a loved one as I do to the subject of dryer lint - virtually none whatsoever. Now, don't misunderstand, I certainly don't
want to do such things (I very much enjoy having certain people around), but besides my learned moral code, there isn't anything except reason and fear of punishment that prevents me from happily engaging in violence against those who irritate me.
This isn't to say that I can't feel empathy. I'm not a sociopath, and I don't consider myself superior to others (well...let's be honest - I try not to). It's just that I don't feel any innate compunction to avoid harming others - my unwillingness to do so is based entirely upon my beliefs and logic. I also don't think I'm that different from everyone else, so I suspect that most people's visceral reaction to such things is also taught, not innate.
Or it could be that it is innate, and I merely trained it out of myself in my continual efforts to divorce my thinking processes from my emotions.
Actually, the kind of evil I fear most is decentralized evil. Diligent evil is apt to get itself caught; decentralized evil is the kind of vicious bastardy that cannot be traced back to any one person, and it's much, much harder to stop.
Unethical corporate decisions nobody takes responsibility for but everybody goes along with because they all want to be "team players." That's decentralized evil, and it's currently rampant. I somewhat doubt Nike's board of directors gets together and discusses how best to ensure that their shoes are constructed in sweatshops. Probably, they just discuss how to keep prices low....
I'd have to disagree. In part, what I mean by "diligent" evil might also be termed "competent" evil, the sort of evil that, even if it fails, manages to do irreversible and widespread harm. Decentralized evil is usually incidental - Nike isn't setting out to harm people, and, considering whether there is other work available for those workers, may not be harming them (according to them) as outside observers believe. Nazism, on the other hand, was very centralized, and very efficient at disposing of people.
This is why I tend to view your statement in regards to fearing governments less than corporations as the equivalent of someone saying that they worry more about the cold virus than they do about malaria. This is, of course, a personal evaluation, but companies, as harmful as they can be, have an incentive not to kill their customer base. Governments have much less of one, and no (internal to their system of operation) incentive not to kill everyone not under their purview. In the 20th century, governments managed to kill more people for various ideological reasons than any company or religion has in the history of humanity. Can the latter do harm? Certainly. But when a serial killer is sleeping in the guest room, the thief stealing your chickens is...less of a priority.
Unless you really, really like chickens, I suppose.
To bring this back to the original topic, I think that the most destructive kind of evil is the organized, efficient, ideologically motivated kind. The EOM, for example, or the Sansha, or the Blood Raiders. The other factions...they all rely on others outside of their factions for survival. But those three I named are internally motivated to be threats to the existence of any outside their faction. They set themselves up as superior humans who may judge the fate of others, and, unsurprisingly, find them inferior and unworthy of equal treatment with concordant results.
I am sorry that this post isn't very thoughtful. I'm rather tired at the moment.