Westeros is going to be worst off with this new small council than it would've been under Dany. Like yeah house Targaryen took a L in this finale but Westeros took the bigger L with this new Master of Coin who didn't even understand the concept of loan and interest in season 2 already ready to rebuild the brothels of KL first before infrastructure. The entire idea that killing innocents on the enemy side is "wrong" or a reason to abandon or murder a monarch does actually not fit very well with the overall setting of Westeros. No nobleman ever condemned another nobleman for the suffering or killing of innocent people in war. Sure, there are less accepted and more accepted ways of how to butcher, exploit, and kill the smallfolk, but none of that is likely to turn people against a ruler.
Dany can be cruel, but it's not cruelty that's out of the ordinary for either the world that the show runners created, or the world of the books, or the kind of societies that they are based on. This is a world in which the "good guys" can feed people their own children, gouge out eyes before slitting throats, feed people to dogs, behead shell-shocked soldiers etc. Dany fits into that world. But, for some reason, from the middle of series 7 onwards, her advisors are increasingly shocked by her behaviour. So, they plot against her, and reasonably enough, she punishes them. And punishing them is then used as justification for treating her as a villain. Varys repeatedly betrayed her, before trying to poison her. What medieval monarch would not put someone to death who did that? On top of that, Sansa is constantly trying to bring her down.
So, then we get to the massacre in Kings Landing. A horrendous deed, by our modern standards, but not by the standards established in this world. The city refused to surrender, and Cersei beheaded her best friend. Any city would expect to be sacked once her army broke in, and all of the armies were happy to participate in the sack.