People who commit genocide to try to establish a utopia are not moral. They may be "moral" - that is, they may claim adherence to a moral standard, and be able to articulate it and defend it - but they aren't moral. In D&D terms, they're lawful evil. But they think they're lawful good, because they are following their moral code. They never stop to think that, if their moral code calls for killing all these people, maybe they should be questioning their moral code.