Yeah, Homelander is great because you can understand how he got to be so messed up and still hate his guts. The happiness and acceptance he desperately desires is well within his grasp, but his stunted emotional development prevents him from ever achieving it.
The best villains are villains who are self-destructive, their greatest enemy isn't really the hero, but themselves. For those kinds of villains, the hero is more or less a vessel the villain projects their insincerities onto.