When villains convert to good or pretend to

Xanatos, not so much. As seen in the current and upcoming issues, he still have his usual agendas and plans.

However, the upcoming comic miniseries "Gargoyles: Bad Guys" will feature the following antagonists trying to go straight:
- Dingo
- Matrix
- Yama (From Bushido)
- Fang (after opposing the Bad Guys that is)
- Robyn Canmore/The Hunter

On that note, in the unmade spinoff Gargoyles 2198
Demona will side with the protagonists of the series, but only due to the threat against Gargoyle kind.

Since Dragon Ball was brought up:
- Oolong in his first appearance kidnapped young girls from the village, but gave up when Goku caught up to him. Plus the girls he kidnapped ordered him around, whereas he wanted them to take care of him.

- Krillen while not a villain, disliked Goku at first. He even took credit for finding the rock with Roshi's Kanji symbol and got dinner instead of Goku (but the dinner was made with a poison fish so Krillen got sick). The rivalry ended after their match in the Tien Saga.


Kare Kano while the show didn't have any villains, quite a few antagonistic characters mellowed out a became friends of Yukino and Arima:
- Hideaki Asaba
- Tsubasa Shibahime
- Maho Izawa
- Reiji Arima (while his parenting left much to be desired, he was a better parent to Arima than his wife Ryoko Arima. Even decides that the best way to help his son is to shoot Ryoko.)
 
It wasn't Sandstorm, it was Octane. It should be noted though that Octane only switched sides because Galvatron wanted him dead for stealing Trypticon. Octane believed that the Autobots were the only ones that could protect him from Galvatron, which is why he joined them.
 
Let's see.

Knut (Winx Club): He wasn't really a "villain", but kind of acted more like a hench ogre to the Trix. At the end of Season 1, he asks Griffin if he can stay at Alfea. You see him once there at the end of Season 2, and near the beginning of Season 3 hitting on the transformed Stella.
Eggman (Sonic X): In Ep 39, he repairs the moon, but in Eps 40 and 41, it was part of his mind control plan. In the end, he gets thrown in jail due to a trick question by Sonic (something that had to do with both of them), and being so vain, Eggman picked himself. There was a funny moment with his "Eggman TV Shopping" infomercial.
 
Prince Zuko, from Avatar The Last Airbender. Started out as a bad guy hunting down the Avatar, wound up becoming a semi-good guy (or at least an anti-hero) during the second season then reverted to being an enemy during the second season finale.

-Kim
 
Team Rocket became temp good guys in Pokemon 2000 and in various eps against Cassidy and Butch/Botch.

Mirage from the Incredibles started out as a henchman for Syndrome, but reformed when he "killed" Mr. Incredible's family.

Princess Clara from Drawn Together began as a cute princess character, but she becomes more of a b**** in various episodes.
 
The general rule of thumb is: if it's an American show, the villians usually stay bad, even if they may temporarily join the heroes for a common cause. If it's an anime show, or something heavily influence by anime, the villians may truly reform for good, sometimes even giving up their lives to protect a former enemy (see: DBZ). A few comments on some people already mentioned:

The Brotherhood of Mutants (X-Men: Evolution): They always seemed more misguided than truly evil. By the last season (the Apocalypse story arc), most of them seemed to be willing to change. Professor X's visions of the future included most of the Brotherhood working for SHIELD as adults, so we can assume they're at least semi-reformed.

She-Go: A former superhero gone bad, maybe the first of her kind on American TV, and yet there are time when she shows flashes of virtue (her loyalty to Dr. Drakken, despite her apparent contempt for him; her willingness to mend fences with her family).

David Xanatos: as a villian, he really was never as mordantly evil as most of the show's bad guy, but even though fatherhood has changed his outlook on life, I wouldn't go measuring him for a halo. A better example of villian-turned-hero would be MacBeth or Dingo.
 
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