Heh, I don’t know, seems to me that fantasy and sci-fi are so ubiquitous that everywhere not explicitly labelled otherwise is part of the fantasy/sci-fi community forum....
Back when Livejournal first came out, a friend of mine started one up for an evil overlord persona. It was interesting primarily for a "this is how it’s done" perspective and for its humour; I don’t know if it could have sustained a whole book, but that just means I personally haven’t thought of a way to do it. You might.
Thing is, though, villains are supposed to be that which we as a society emphatically Do Not Want. In order to keep a reader’s interest, you risk making your villain protagonist character so sympathetic that the reader winds up rooting for them all the way, and do you really want the implications of that? Alternatively, they might wind up "petting the dog" so often that they cease to be villains altogether.
A moral grey zone might be the way to go. I haven’t read any of the "Game of Thrones" series, but I get the impression (all my friends are geeks) that’s pretty much what Mr. Martin did there.
I’m kind of married to the mystery (real world setting) genre right now, but I have had a fantasy setting in mind for the longest time. It involves someone claiming to be the long-lost High King of a fantasy kingdom, and the reactions of the feudal dukes who have no intention of giving up their power. The key point is that it is never made clear whether the so-called High King’s claim is legit: he could be the real thing; or he could be a pretender; or he could simply be mistaken. And if he isn’t the legitimate High King, what if he’s still the best thing for the kingdom right now? Would the dukes be the good guys or the bad guys for opposing him?