Well, of course that does change things quite a bit. Deities tend to be exempt from morale judgements on the basis that they are gods.
so, on one hand, if the deity is just plain collecting souls, then you are pretty much describing Death. Not exactly the most well liked character around. People see his role as necessary and important, but nobody in their right mind has anything but a grudging respect for him.
On the other hand, if you are talking about people sacrificing their souls to this god, then you are almost always talking about some sort of occult following. Satan or anything worse. Keep in mind that there are only two reasons why anybody would give up their souls willingly.
One, to temporary gain power. In otherwords, witch-craft. Not only is this very dangerous and shortsighted, but only those obsessed with power would ever join up. This means that you have a cult where every person is obsessed with power to a very unhealthy extent. Hence the reason why witchcraft is...um...how do you say, frowned upon.
The second reason for sacrificing your soul is to appease the god so that it will not bring its wrath upon you. That whole wrath thing also has bad connotations. There may not be any morale accountability, but again, all you are left with is a grudging respect for the fact that the God has the power to destroy you all. He is a feared god, not a loved one.
So, in otherwords, YES, it is still bad. There is really no way to avoid the fact that collecting souls is a bad thing.
C'mon Akuma, I expected more from you.