I don't recall it being very well played out in the movie, but I can make a pretty strong case that what Ozy does is necessary and that he's hardly either a "villain" or a "fascist", at least in the novel.
First, he could have followed through on that cheap unlimited energy business. Second, he could have convinced Dr Manhattan to play the terrorist without killing so much people. Like, targeting most high-profile military installations and civilian symbols. Oh, and while we're at it, he should have financed a (Friendly) AI program as well.
I get that the guy wants to create a Bostromian Singleton. But come on, it's only level 3 on the Yudkowsky ambition scale[1]. No need for such massive killing, especially when the glowing blue ape right next to you is at least at level 5.
[1]: http://lesswrong.com/r/discussion/lw/ehd/the_yudkowsky_ambit...
I didn't get that, although it's been a long time since I read it (and I have a general rule against taking movies too seriously). The world in the graphic novels was hyper-'80's bleak: a high threat of nuclear holocaust and extreme stagnation in every other area. (I can't remember, did the extremely popular but hideously depressing pirate comic book make it into the movie?) My impression is that Ozy wanted to break the stalemate, altruistically. If he wanted to rule the world, he could have done that easily enough, and cheap energy, etc., would likely reinforce the status quo.
Instead, he comes up with a complete game change: He removes Doc Manhattan, who is very bad influence; who is going to want to do anything with Manhattan standing around? (IIRC, that works out the same as in the movie.) And he arranges for humanity to discover an outside enemy, one which requires humanity to pull together and work like crazed gophers to advance science, technology, and likely general society in a way that hadn't happened since WWII. The outside enemy turns out to be giant, psychic, trans-dimensional aliens, which have the advantage of not actually existing.
The death toll involved is significantly less than the movie, since he only has one of the things and uses it to destroy New York. On the other hand, I have a friend who's favorite character is Rorschach, because he's the only one who is in on the story who doesn't go along with the murder of millions of people.
(By the way, I'm humming "Sympathy for the Devil" right now.)