I can’t tell quite what you think you’re saying because “worse” and “morality” are such overloaded terms that the context doesn’t disambiguate well.
Seems to me like people calling it “evil” or “awful” are taking an adversarial frame where good vs evil is roughly orthogonal to strong vs weak, and classifying the crime as an impressive evil-aligned act that increases the prestige of evil, while people calling it disgusting are taking a mental-health frame where the crime is disordered behavior that doesn’t help the criminal. Which one is a more helpful or true perspective depends on what the crime is! I expect people who are disgusted to be less tempted to cooperate with the criminal or scapegoat a rando than people who are awed.
X and Y are cooperating to contain people who object-level care about A and B, and recruit them into the dialectic drama. X is getting A wrong on purpose, and Y is getting B wrong on purpose, as a loyalty test. Trying to join the big visible org doing something about A leads to accepting escalating conditioning to develop the blind spot around B, and vice versa.
X and Y use the conflict as a pretext to expropriate resources from the relatively uncommitted. For instance, one way to interpret political polarization in the US is as a scam for the benefit of people who profit from campaign spending. War can be an excuse to subsidize armies. Etc.
I wrote about this here: http://benjaminrosshoffman.com/discursive-warfare-and-faction-formation/