Classifying Melkor as "evil" is questionable. He sought to further his own purposes, and since those were in disharmony with the other themes in the Music they were resisted and this caused strife. What's interesting is that, while the Valar did not know what physical manifestation their music would have, Iluvatar did and still he did not condemn Melkor. Instead he declared that ultimately his will would be accomplished, with Melkor as his instrument.
At this point it had all been laid out for Iluvatar to see. This suggests to me that Melkor had not done anything "evil"--at least in the absolute sense--in the eyes of his father. The corruption of Arda becomes minor on this universal scale, and the "big picture" had not been altered from Iluvatar's original purpose. Melkor, at the time when he had already wrought all his corruption, was above (or outside the jurisdiction of) the concepts of "morality" or "good and bad" that we and the Children of Iluvatar are familiar with and use as guides to make our decisions. Melkor merely resisted the vision of his Creator, which he was created with the will to do and this action was apparently still within his rights. Iluvatar did chastise him, but then made it clear that the beauty of his vision had not been compromised:
Quote:
In the midst of this strife, whereat the halls of Ilúvatar shook and a tremor ran out into the silences yet unmoved, Ilúvatar arose a third time, and his face was terrible to behold. Then he raised up both his hands, and in one chord, deeper than the Abyss, higher than the Firmament, piercing as the light of the eye of Ilúvatar, the Music ceased.
Then Ilúvatar spoke, and he said: 'Mighty are the Ainur, and mightiest among them is Melkor; but that he may know, and all the Ainur, that I am Ilúvatar, those things that ye have sung, I will show them forth, that ye may see what ye have done. And thou, Melkor, shalt see that no theme may be played that hath not its uttermost source in me, nor can any alter the music in my despite. For he that attempteth this shall prove but mine instrument in the devising of things more wonderful, which he himself hath not imagined.'
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I use the word "questionable" above because I'm not sure how much of this I can buy, myself. There has to be a line drawn. Since Melkor existed both prior to and without Arda, and then subsequently
within Arda as well, we have to ask, At what point did his actions become wrong or "evil?" For example, we're sure it was wrong for him to torture Hurin cruelly for years, but at the same time the War of Wrath was woven into the fabric that Iluvatar had seemingly approved of.