As for "being raised the loyal daughter of a pantheon of evil gods" I guess that means Young and Beautiful and Chief are "evil" as well? And probably the rest of the GAP, although those two are the only ones offhand I can remember directly calling on Muglubiyet.
So I suppose that makes Goblinslayer (and Kore) correct, and everyone including orphaned dwarf children "associated" with evil should be destroyed just because that's what "the book" says?
Duv was raised as the loyal daughter of Goblin gods, and why not? She was a Goblin! Since we don't get to choose our parents, we don't get to choose what their culture is, or how others label it. We just get to deal with it and make our own choices as we go.