i just want to say that political stances (specially these left vs right fucking bullshit) have 0 contribution to a movie/series being good or bad, at least not in my opinion. i rate them by the fundamentals. now the huge stress watchmen puts on the oppressed and the acts of oppression may get boring for some at some points, but the story itself is too damn fine and refined so if i was on the right wing, i would've let it pass.
now, none of the characters are symbol of morality in watchmen, they are symbols of morality and also symbols of abusing your authority which ultimately leads to catastrophe.
i think the movie has misrepresented rorschach's character, quite terribly so. in the original comics (way superior to the movie) rorschach may have a facade of bataman-esque complicated, violent, dark but also noble heroism. but underneath all this, where he talks about his worldview and reasons for what he does, and how other people see him, its hinted that he is a gross, sad, excessively violent person with a black and white philosophy (which verges on facism) who likes to impose his own version of morality on everything he sees using violence and bloodshed. the dark side of humanity (the brutally murdered girl, his childhood, his "colleagues") broke his mind and personality and changed him into the a very gross creature with a very dark outlook on life.
plus, rorschach used to read a newspaper called "new frontiersman", which CLAIMS to be conservative but is actually a lowkey racist, white supremacist publication, and rorschach liked them a lot; which implies correspondence with its ideologies. it is basically moore's (the creator of watchmen comics) way of telling us rorschach was, to put it nicely, NOT as moral or rational as we believed him to be. and he also sent his journal to them before he went to antarctica. so this is probably how 7th kavalry started.
tl;dr rorschach was basically an asshole with a fucked up ideology and a newspaper took advantage of his journals and an status as a KIA superhero in their content which inspired and ultimately led to the creation of 7th kavalry. so i dont think they retconned anything.