As you can no doubt see by my avatar, I am totally neutral in this debate... but yes, Sunset was not the most nuanced villain ever... which is why reforming her into the protagonist of Equestria Girls works so well... she was bad at being evil, she is better at being good (while not losing the traits that started her down her road of darkness in the first place, merely turning them to her benefit) 90% of Rainbow Rocks was about restoring her self-confidence, which I can elegantly demonstrate with a single frame:
Of course, maybe other stuff happens after Friendship Games, but I haven't seen it.
That's... generally what happens after a villain is "reformed". They stop being villains.