I think there are lots of ways for a character to be nasty and only one of them is violence.
Sure, you could have someone like Jigsaw as a villain, but are they worse than Cruella De Vil?
It'll definitely reflect on the developer- but there's an audience for everything- and the only really *bad* thing I think you can do is give people something they really didn't expect or want to see. In other words: people enjoy films by Martin Scorsese and Quentin Tarantino, but if people went to the cinema expecting to see a PG Disney film and got that instead, you'd upset a lot of people.