In Madara's eyes, he's the good guy
Kabuto didn't think he did anything bad either.
Izanami only forces people to acknowledge the bad they've done.
Not exactly, but even if that was true, Madara is not more prone to accept that than Kabuto. Anyway it was specifically created against ppl who uses izanagi so they accept the fate they changed, which in Madara's case was to be death.
he does it because he doesn't want any more pain or violence.
He wanted Nagato and later Obito to die just so he is the one casting the tsukuyomi and not them and he wanted to fight a lot of times just for the sake of fighting even when the opponent/s didn't want to fight (and fighting them wasn't necessary for the infinite tsukuyomi).
it also only works on people who are trying to become like someone else; Madara isn't trying to be anybody else, he's being himself
Kabuto was trying to surpass Orochi, not just being like him, though, he tried to obtain all Orochi's powers and more. But that's the same Madara did: he tried to obtain Hashirama's power, Hagoromo's and Kaguya's later.
Madara looks like the weakest ninja vs izanami (maybe as much as Obito)