Chakashi is an indian spirit of the Desert Coyote arc of Atlantis Milo's Return. He was turning those who he deemed as threats into dust coyote spirits so that the secret of Crystal Guardian will be kept safe for all eternity. he is not to be considered evil, he's nothing more then a simple spirit guardian with an over-protactive mission. thankfully, Milo and the gang were able to convive him that they'll keep his secret, and have no intend on profiting or destroying the anicent indian village, unlike Ashton Carnaby (who i must tell you, guy to made this, is the real villain of that arc of the film.) who was turned into a dust coyote for his intend to profit from the city. it's not known if he'll appear in the siries, due to the arc he appears in was not used for the Spongebob and Friends meet the great mouse decrecive, as it was not planned anyway, but if he should, he's more likely an over-protactive guardian spirit of the High council then some corrupted pawn to the villain leage. Alcourse, why he has villain-like methods is because the spirits of the indians tend to be less forgiving to those that disturbed them, as for the red eyes, it's to imtimidate enemies, not everyone or everything with inaprooviable methods and creepy eyes can be an automatic villain, you know, it's more complex then that.