[Kuruharan]

While it's useless to argue about how somebody perceives the tone of a written statement, here goes anyway.

And his countenance was stern...Iluvatar arose a third time, and his face was terrible to behold...the Ainur were afraid...Melkor was filled with shame, of which came secret anger.

Iluvatar was not pleased by what was going on. I don't see how it could be made plainer.

The other Valar saw this and did not approve.

It also said that Manwe was the one that Iluvatar raised up against Melkor. Manwe is the one who is closest to Eru and best understands his will. I take it from that Iluvatar felt that Melkor's discord needed combating.

Melkor actually was contributing to that in his own unique way.

Just because Iluvatar did not destroy Melkor and his work in the instant of their conception does not mean that he approves of it. He's allowing it because eventually something better will come out of it. However, that does not mean that Melkor is not evil. Things might have turned out utterly different and without all the suffering if Iluvatar's will had been obeyed and Melkor had remaind within his role. But Melkor was allowed his free will to rebel, because giving the Ainur free will was part of the reason for creating them in the first place.