JK mentioned how Slytherin is not just the house of evil people, but that each evil person came out of Slytherin. I do not remember what other positions Slytherins have in Canon but we can surely come up with reasons to have such a house. First it helps students to reach their full potential (at least in the theory that fiction is), second it provides a training ground to have people for the more dirty needs of society like leading in a war. Was there ever a mention which house Dumbledore went too? Third it provides society with some training for how to deal with evil people. If there are none left society gets overrun by an outside force. Fourth there is the value of not having the Slytherins poisoning other houses. Having a house of Bullies would be a nice add to the real world (till your research shows that a strong hierarchy forms in every social group.) Fifth it gives you someone to contrast yourself against. Sixth if Slytherins are more adventurous, prone to doing dangerous things that they are also the inventors of new things. A healthy society needs some innovators, some bureaucrats, some workers, some people to provide Emotional support, some teachers and so on. I remember reading some reasons for the House of Slytherin in Canon, but memory evades me.
each evil person came out of Slytherin
Wormtail was Sorted into Gryffindor and turned out to be a bad dude. This seems to have more to do with Rowling's desire to have him plausibly be a Marauder, than anything related to any aspect of his revealed personality. She's very prone to that - the same rationale was likely behind making canon!Hermione a Gryffindor.
Update: This post has also been superseded - new comments belong in the latest thread.
The second thread has now also exceeded 500 comments, so after 42 chapters of MoR it's time for a new thread.
From the first thread: