If you go by EQ lore, the Iksars really aren't Evil in the sense that they would ally themselves with other Evil races. They're Evil in the sense that they view themselves as the master race of Norrath and view every other race as beneath them and worthy of death. So really, it wouldn't make sense for Iksars to officially ally with Neriak any more than it would make sense for them to ally with the good races.
From a lore perspective it makes much more sense for the Iksar to just kill whoever they want. This would also apply to Iksar killing other Iksar, as the Iksar culture is all about purging its weak members. In a happy coincidence, allowing Iksars to choose their team also turns out to be good from a balance perspective, as it denies any one team a monopoly on Kunark, which is an enormously powerful advantage (as SZ showed) and quickly leads to imbalanced teams.
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