The majority of Azurites had never harmed a goblin in their lives. They didn't even know about the crusade against goblinoids, given the Sapphire Guard's general secrecy. Redcloak might have been entitled to his revenge against the paladins, but not the innocent people who happened to share a nationality with them. Which is suspiciously similar to wiping out a goblin village because their priest happens to be wearing the Crimson Mantle and following a potentially disastrous plan.