By his own "code", she would require horrible punishment.
Rorschach cares more than he lets on. We start the story with him claiming he would refuse to save all the people when they scream for salvation, yet near the end he goes to stop Ozymandias with the full knowledge the other man is stronger, faster, smarter, better equipped and prepared than him in every way. He goes with the full knowledge he is likely to fail and die, but it is the right thing to do, so he does it.
Rorschach is human, fallible and heroic. People naturally respond to that.
Rorschach's moral event horizon is him killing a pedophile like an animal after he finds the pedophile's dogs eating the remains of the girl he abducted, raped and killed. Rorschach cares, and cares deeply.
It says a lot about Moore that he thought a character that did this would be seen in a negative light by the audience.
More importantly, Rorschach is genuine, and his conviction is pure. Every other cape gave up when things got tough, or simply walked away from the life once they got rich and famous.
Everyone besides Rorschach was playing pretend, while Rorschach is still out on the streets stopping muggings, rapes and murders.
Besides all that, Rorschach is the first POV character we are introduced to, we uncover the mystery through his eyes, he has by far the coolest outfit/mask, and most of the iconic fights and scenes are either centred around him, or feature him in a major capacity.
he is so mean-spirited and small. He is a miserable human being locked in teenage ODD
Ennis also shat out Crossed, so that description fits him to a T.
the thing I struggle with on adapting your take on what Moore thought of Rorschach is that Rorschach wins, the leak comes out and all the horrifying moral compromises the other "heroes" made were for nothing
It's left ambiguous. Rorschach does send his journals to a right-wing publication, but it's little more than a fringe rag, and even if they publish his journals, which read like the ramblings of a schizophrenic hobo, it's unlikely that the public would believe them, especially since Ozymandias would still be alive and in control of his business empire. Only real hope is for Nite Owl to develop a fucking spine and come out with the truth, but he's too much of a cowardly cuck to do it.
I imagine the Watchmen world in the 2000s, with /pol/ denizens posting excerpts from Rorschach's journal and pointing out all the holes in the NY alien attack narrative, ala what people were doing with 9/11, and being called crazy for doing so.