Rorschach is batshit insane on several levels. He's still far more human than most of the other characters: there's a single point where Rorschach meets with his landlord after fleeing the prison (an atrocious screeching subhuman that made up a story about him being a sex pest to sell to the tabloids). By his own "code", she would require horrible punishment. For a moment he stops, notices the crying children behind her and simply goes away. Because he sees something of himself in the children. And they are innocent.
I find amusing to reflect about Watchmen in a Boys thread. Moore wrote Rorschach as a negative character, but he's still a hero. He resonates with the people because there's something primal in us that screams that we should act when something is wrong, that there's a righteous anger somewhere. After all, what's Rorschach greatest sin? That he's a terrific loser? Despite being poor, uneducated and a bigot, he tries to do the right thing. Compare and contrast with all the other Watchmen that are essentially morally bankrupt or detached from humanity.
Rorschach is human, fallible and heroic. People naturally respond to that.
Compare and contrast with The Boys where everyone is simply an asshole. Imagine Rorschach written by Ennis, where the only two options we could are lone wolf spec ops too cool 4 u soldier man or pedophile loser rapist. Has Ennis ever written a character that has any finesse?