The tone was darker, but it still wasn't any more morally conflicting. It's still super-evil child murderers and enslavers VS pure-hearted good guy resistance in part two. Part one was different, but even then, most of the foes Sigurd faces were still bastards like Chagall, Sandima, Leptor, Langobalt, the Jungby lord whose name escapes me at the moment, Trabant, the likes. Even Alvis had a dick move in flaunting Diadora before he BBQ'd Sigurd.
But what my point is, in pretty much every FE game, you don't really come across a bad guy from the Lord's home area. Be it Altea, Chalphy, or Pherae. So, Hoshido is not unique in this area.