Yeah, I was sad. I have a character who's an honorable mercenary type, perfect for the Companions, but also a proud Redguard, proud of the blood of her father, proud of her heritage, proud of her humanity. Distrusts magic, hates evil, hates corruption.
Then these guys go, "Hey, we're honorable mercenaries too! Just to let you know, if you want to work with us, you have to drink monster blood and become a abomination of warped humanity. Oh, and renounce whatever beliefs you had before and pledge your soul to this one Daedric Prince. Don't worry, he's cool."
Um, yeah. Kinda had to walk away from that. At least there's still the occasional bandit hunting mission from bartenders to make me feel like a mercenary.
Yep, that was my reaction too. I do a couple quests for them on my Paladin, they seem like alright guys, a new fighters guild of sorts. Then I find out Farkas is a werewolf and the others are secretly werewolves. I'm a bit troubled by this, not really that comfortable helping a gang of Hircine's servants kill some werewolf hunters. The Silver Hand seems to be hunting the wrong werewolves though or for the wrong reasons, because the Companions seem to have their curse under control. The last straw though, is when right after Kodlak tells me about werewolf souls are placed under Hircine's jurisdiction and power, they tell me to take on the curse myself! My character has no RP reason to accept a curse that would make him an abomination and risk his connection with his god, Stendarr. Especially after Kodlak just told him of the reason why being a werewolf is not so great. Their talks of honor rang hollow to me after that, what honor is there in changing into a beast through a Daedra's curse to fight your foes? I haven't continued the quest so far, and doubt I will with this character.
Hopefully we'll get a nice DLC adding some quests for the Vigilants of Stendarr sometime in the future. They seem to be a grey faction through their uncomprimising zeal, but they do protect people from supernatural beasts and worship the same god as my character, so maybe I can reform their ways by joining them and becoming a leader in the faction. Teach them that mercy and forgiveness is one of Stendarr's key aspects, though defense of the innocent is important as well.
I doubt we'll get any development for the Silver Hand except through mods though. They may as well be bandits the way Bethesda portrayed them, which is pretty annoying.