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Morgoth is the creator of evil. Of course he isn't a villain. If it wasn't for him, we wouldn't even know what a villain WAS.
Anyway, Sauron was, in effect, an utter failure. He created the Rings in the hope of dominating all races. The elves just hid themselves, the Men were corrupted but even a tiny portion (the Faithful) were able to resist him successfully and overthrow him, the Dwarves were simply too hardy for his power. Sauron in the Third Age is just trying to super glue together the antique vase he deliberately dropped. If the Gondorians weren't fading and the Elves weren't leaving over the sea, Sauron would be beaten all over again.
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