This man, the Steward, is far more than he appeared at first.
He was a 2D stereotypical "well intentioned" villain, with a "reasonable" motivation for commencing his path of ill deeds, harboring no doubts as to the "righteousness" of his cause, for it was all for the ultimate good of the town under his care. His initial premise as to what was "good" for the town was flawed, and thus everything that followed was flawed.
But... he proved capable of recognizing proof that he had been in error.
That his initial premise was flawed.
Of then changing his course of action.
Of surviving the shock of discovering that his initial premise was even more flawed than he first realized; not only did the Sacred Spirit desire the integration of those mentioned in the nation's legal code, but the Elves, rather than being repulsed by such integration, desired the integration of any additional species as possible!
That's... rather amazing, actually.
Given that his rise to power was based on wishing to exercise revenge upon those who killed his parents via the destruction of their species if at all possible, and had expanded into a distrust of all non-Humans except those he was forced to recognize as being beneficial, such as the Elves due to their economic investments in the locations they favored, being able to recognize that his expansion of a desire for vengeance from the specific individuals involved to all non-Humans was wrong, and surviving the shock of that realization, and being able to then change his planning to reflect this new worldview demonstrates much more flexibility of mind than one normally encounters in those who have embraced the views he held.
He's demonstrating that he's actually fit to hold his position of authority, despite the flawed reasoning that led him to seek it.
Not the stereotypical corrupt official found in Isekai, after all. Even before his "reform", his actions really were those he felt were best for those he was responsible for, not just those most beneficial to himself. It's just that his understanding of whom he was responsible for was flawed. And he proved capable of surviving the experience of fully comprehending just how flawed his understanding had been; it didn't shatter him, it didn't break him, he proved capable of calmly redirecting his efforts as necessitated by the changes in his understanding.
Including his understanding of the worth of those summoned from another reality to their aid, whom he initially felt of no worth at all, now he is actively covertly scheming to change their minds such that they willingly stay rather than returning to their home reality, because he thinks that their ongoing actions will be for the betterment of those under his care.
He may even end up being a pleasant person, as a result of all these shocks to his worldview. Because, let's face it, he really was an unpleasant fellow while wallowing in his bigotry.