He was never going to be accepted as a villain. Like it or not, the public seemed largely willing to forgive him his trespasses. Even normally puritanical Americans. There's a sociology paper in there somewhere.
But no, I think MJ could have had a second act, had another great piece of music in him. I didn't necessarily think that before he died, but watching his final rehearsals (in This Is It) it was clear there was still some magic left, if he could have found it. Even literally on the verge of death and only in rehearsal, the guy was unbelievable onstage. If he had lived to do that concert tour...? But alas, we'll never know.