Babaganoosh--I would say that all of us have tendencies that we would not care to admit to. Do we as humans not have xenophobic tendencies? I would suggest that as much as we don't want to admit it...we do. Such is part of our nature, but a person who is of right mind has the ability to recognize that those things are not desirable and to keep them in check--to decide they will not indulge that line of thought, they will not follow through on that course of action because they know that while there may be some instinct that encourages it, that it's wrong.
To me, my question would be, what is Garak's attitude towards those tendencies in himself when he is of right mind? Does he believe they are legitimate, or that he has a duty to resist them? Is he repulsed by the dark sides of himself?
That's always a tough thing to tell with Garak, but I, at least, thought he was very deeply ashamed and that his remorse demonstrated that those were not actions he believed
in, in his right mind. Garak even seemed at peace with the knowledge that O'Brien had intended to kill him for what he was doing--that his actions deserved death. Maybe part of him worries that he shouldn't have been allowed to live, now that he's seen his dark side expressed to this extent...perhaps as atonement. And it seems like he was badly shaken...you don't see any signs of his usual "masks." I think that, too, is a sign of his real feelings--he can't even find it in himself to lie.
I can't believe I'm defending Garak. Normally I don't like him at all. And yet I don't think what we saw on that station was conduct that, if he'd been in his right mind, he would ever have approved of.