At first glance, Sid definitely looked the part of a villain. He was coarse, tore the innocent toys apart, created abominations and was mean to his little sister. Woody, Buzz and the other toys in Toy Story had ample reason to be well and truly afraid of Andy's neighbor.
at this realistically for a second. Sid doesn't know these toys have feelings and as far as we know, aside from the usual antics you can expect between siblings, he's not actually a bully. He's just your average kid who likes playing and creating. The film depicts him as an evil villain but parents -- or really any adult -- can see that he's not very evil at all.