William Edgars was right about the Telepath threat, but wrong about the strategy to deal with it.
The Telepaths were a threat. However, they had been made a threat by their enslavement. (I imagine the counter-argument would be that the enslavement neutralized their threat - an argument I don't like for moral reasons. But it does have a chilly sort of logic.)
He was a villain. He didn't know he was a villain. He thought he was perfectly fine. Even heroic. LOL, aren't we all the heroes of our own story?
Side note: I loved his casual, off-the-cuff insights into just who ran the EA. His truth applies to our real world just as much as it applies to the B5 universe. However, I feel he underestimated just how much power the State actually has. Especially a State that is a Dictatorship, as it was under Clarke.
What should Edgars have done? He should have used all his power and charm and connections to dismantle the PsiCorps and integrate Telepaths into normal every day life. (Problematic, that - in a big way. Still, it's the right thing to do.)