Daniel Holtz, do you really see him as the villain?
Absolutely. I do not choose to view his character sympathetically. Holtz had a choice, and he choose to do evil, manipulate those around him, and be an all-around bastard.
That said, Holtz's personal vendetta towards Darla and Angelus was, in my opinion, justified.
Was, key word. Darla and Angel slaughtered his family viciously and without remorse. Yeah, that's bad, but it's what vampires
do. They didn't just kill them, Angelus raped his wife and turned his daughter. When Holtz returned and realized Angel had
changed - that he had a soul now - he should have backed off, and he certainly should have never brought Conner into it, or any other people for that matter. Holtz was not interested in justice, as he claimed, he was interested in revenge - a very different thing. Stealing Conner to hurt Angel was selfish and put Conner in danger, not to mention damaging him beyond repair. Conner was an innocent in this. He had nothing to do with what his father did all those years ago. I also dislike how Holtz manipulated Justine for his own devices, and clearly used her feelings for him as leverage.
On the flipside, I pity Holtz, because he was a broken man, clearly obsessed with revenge so much so that he lost himself, and probobly did things he never thought he would because he wanted a child so badly.
The look on Angel's face when he sees Holtz take Conner is about one of the saddest things in the whole show.
Was Holtz a villian? Definitely. But he was
human, which makes him all the more interesting.