The thing you have to realise about Britain, and its empire, Is that IT didn't want an empire.
Britain always sought to annex and conquer regions, only when their rivals were moving in. They were perfectly happy to save money on administration and garrison fees by letting the nations remain independant. They had no problems recognizing Cruzob, leaving the boers alone, dealing with native nations..
Up until the point other powers moved into the area (hey, by todays standards they are evil..but if you judge them by their peers they were fricken angels). When the germans became involved with Boers (conveniently when diamonds and gold became involved) it was time to put imperial survival first.
While Indians could not join British Social Clubs, thats another thing they added...a barrier between state and private control. While it has its bad uses, the government did not intervene in any way with private social clubs.
It isn't a bizzare coincidence that previous British governments are the most stable.
YES BRITAIN DID TERRIBLE THINGS. And while we are vastly better than Britain, so too will our ancestors be vastly better than us.
Would it be fair for people in 200 years to say Canada was a horrible tyranny because they become a more utopian society than us?
Would it be fair for them to Ignore how we changed the world for the better? To ignore how much better we were than North Korea or Iran?
To compare Britain to how we are now is silly. Its like saying a toddler is mentally defective because it isn't as smart as an adult. Britain was the empire that founded the values we hold dear, the very values we judge them upon.
Most Empires tend to become more evil and corrupt as they grow nearer their collapse, Britain is one of only a small handful who became more just and free before ending. And you gotta give it props for that.