OK here is an attempt to give you what you want.
Note to everyone else, I'm not trying to suggest this is canon Glorantha. Instead I'm helping someone with a myth that fits what they need for their game. When folks play games Glorantha should be a tool not a straightjacket. So try to avoid 'that doesn't fit with canon' responses. YGWV.
The idea here is that the 'road to hell is paved with good intentions'. Mallia's actions are attempts to save the world, but they come close to destroying it. For sympathy with the hero, this kind of tragic blindness works.
One way to look at Mallia is that she saves people from disease. So in your myth the world could be ravaged by disease and Mallia sees the people's suffering and wants to help. Unlike Chalana Arroy, Mallia's approach is to find a way to negotiate with disease instead of fight it. So she makes a deal: if people agree to share their bodies with you, then it is in both your interests if they live. Of course the problem is that these people then carry disease. But Mallia is unworried, after all if everyone agrees to the accommodation she has negotiated with disease then they will live. So she is a heroine, because she saves people from disease. Of course CA can't see that, because, to Mallians, she is a violent goddess who refuses to 'live and let live' when it comes to disease. But to Mallians CA is the problem, by resisting the accommodation she creates suffering. Mallia believes that she is the better healing spirit, because she fights suffering.
As for birthing the devil. Well perhaps she tries to heal Ragnalgar. She decides that the way to protect the world from him is to sate his lust. But she is diseased and he won't touch her. So she finds the one person who is willing for Ragnalgar to touch her, Thed, the goddess of rape, who can't deny him, who can't deny anyone. Once again she thinks she is protecting the world, pushing Ragnalgar's uncontrolled lust on the one goddess who cannot, will not object. It seems pretty evil, but you can see the good intention, prevent the suffering of the many even if the price is the suffering of the few, that underlies her action.
And perhaps one day Ragnalgar tells her that the broos are not the son he always wanted, and he is going to abandon Thed to see if he get his son on another goddess. And Mallia says wait I know a fertility ritual that could help, that taps the chaos from which the cosmos was formed. Filled with hubris at her own ability to overcome the limitations of nature she tries to help Ragnalgar have his son.
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