It's pretty clear that Belkar is not as Evil as he used to be. I still think he's evil though, just not as much. In my eyes he won't be Neutral as long as he has not at least :

1) Committed some kind of sacrifice (ie make a good act that costs him something for selfless reasons).

2) Expressed regret over his past crimes.

And even then it would still be a long way to go. Redemption is rare thing after all.


I would also like to point out that there are people who argues he has been CN the entire time.