Hypocrisy: Killed one of the other golems for interfering. Eventually did so himself.
Heroic Sacrifice: At the end of the second game he allows himself and the Big Bad to be crushed by a giant bell, so (now that they're all dead) four new golems will be assigned (and hopefully do a better job).
Jerkass Has a Point: In our own world, we would certainly want to imprison someone who went around kidnapping kids and raising them as his own.
For the Evulz: Xotl-Teh enjoys toying with the lives of the people of Zenozoik, including setting the events of the game in motion, solely to create amusing scenarios. He does this because otherwise, he would literally die from boredom, having lived for an unfathomable long period of time.