I think you guys should be careful in mythologizing Vito so much- Was a more moral Don than Michael? Without question, but he was still ruthless as well as a sociopath just like any man in his profession. I think what makes The Godfather so universally appealing is that(taking all the bloodshed aside) Vito is pretty much setup as the ideal father and leader- that's his IMAGE to the viewer and to his children, and it is a common theme in life for the child to "live up" to the father morally or even surpass him economically, but we don't really know the experiences the father went through until he became that ideal figure to his family and community, yeah we get to see glimpses of him in GF2, but he is still a somewhat romanticized figure because he is the underdog and he is pushed into a position where he must feed his family by any means necessary.
Both films really are about Michael and are more of a personal character study of one man's soul and what is to my opinion one of the greatest character studies ever committed to film, We don't get that close to Vito- he still is very much an enigmatic figure and presence within the family, we never see him make mistakes so who knows how he would have handled Freddy? Would he have gone so far as to have him whacked? Probably Not, but maybe he ignored and discouraged him as a child and doted on Michael too much and that was the festering problem? Jealousy is a dangerous emotion, was Freddy stupid enough to think an attempt won't be made on Michael's life or did he see it as an opportunity, even on a subconscious level to head the family and finally get the respect that eluded him all his life?
It's like the movie Rashomon, imagine if the story of GF1 & 2, was told mainly from Don Vito and Fredo's perspective with Michael, Sonny and the rest of the clan as mere side characters- would you feel as appalled with Michael taking him out? would you have more sympathy for the character?
Just food for thought ladies and gents.