This biggest problem is that, yes his feelings toward her are different, but we all know he is still capable of doing that to someone he dislikes for little to know reason. Even if he doesn't do that to her, imagine having to sit and watch him torture some other poor soul. It takes some real meanness deep down to be capable of raping, torturing, and murdering the father of someone you knew since childhood. Like he saw her as a cute kid and everything. Still, he was like, "c**t"
So I agree a lot with your 2nd point. I think he's still just as mean as before, but not showing it in this life. It hasn't been triggered in him (yet). But he's just as capable of being that man. If she does fall for him, but says one thing wrong he'll turn on her like before. He's a ticking time bomb.

Without taking anything from the truly GORGEOUS art, the writing in the first season is really mediocre but it's at least fun and it got me invested so good job on that.
Here's some tea:
1) why is everyone so bad at whispering in this universe? If you're gonna gossip or talk about someone behind their back at least have the decency of not getting caught. I wouldn't go as far as saying that the author only knows a couple tropes and is kinda bad at using even those few, but you know...
2) everyone is so divided about hating the prince or not, but here's the thing. Maybe we wouldn't be if he wasn't written as "psycho, lick my shoes, syke i killed ur dad, lol now i kill u 2 while smirking". Like, how do you go back from that?
EDIT: now that I think about it that would be an interesting redemption-arc challenge, they were failing at it in the first season, they're starting to pick up in the second but I wonder if it's already too late for the prince?