Maybe we look at good and bad through a human lens. Maybe there is no such thing. There is possible, and impossible. And impossible might only be impossible due to the conditions of the time and once conditions change, the impossible can be possible.
However, this is a copout for your question.
So, maybe similarly, good and bad is contextual, time-based. Bad on one situation is good on another. So, perhaps what sets them apart is wisdom, not capabilities. We all have the possibility to commit acts of love or violence, and sometimes they might look like the same act, but with wisdom applied, there is the context of what is appropriate in the moment.
If people were wise, there would be no war. If they were wise, we would help each other be our best as individuals, and that would mean we would be our best for the group also. But wisdom comes with the right kinds of experiences and reflections.
I don't know if we are bad or good, but as a species, we are fucking stupid.