He killed those people. I guess you could argue since he knows about the dragon balls that they could wish them back after, but he still straight up killed them to get goku to fight.
Tbh I don't think vegeta really was a good guy until he fought kid buu. He was pacified sure and maybe even on the path to being good, but that was because his target was gone and to his knowledge was never coming back. That's why I love his turn to majin so much. It's a hardcore backslide because his target came back and if it wasn't for that he never would have realized how much everything on earth actually meant to him.
I don't consider him good after going for fat buu because he wasn't being selfless yet. Him + goku could have taken buu on but he felt like HE needed to be the one to finish the job. His sacrifice was hollow since it (despite what he said) was for him. If it really was for everyone he would have let goku join to guarantee a win.
It wasn't until he fought kid buu that he was actually being selfless. He let himself get wailed on so goku could charge up knowing he both stood no chance and could potentially be permanently erased since he was already dead. The "you are number one" speech is the conclusion to his story and his redemption.
This became a bit of a ramble but I love Vegeta's story and could probably keep going if I had the time