That's up to debate. I still believe he would have only allowed the people in the city to die. I'm sure he knew of the loop hole... Killing most of the people on earth just makes no sense. It goes completely against Sparda.
Remember that Vergil is not Sparda, he may want to emulate him in power and to some extent personality wise, but it does not mean that he is obliged to share his ideals on numurous things like protecting mankind for justice. He is his own character with his own goal(s).
Doesn't measn he's evil persay...we fought Dante twice in DMC4, and he wasn't evil, it was just a plotted boss fight. Likely it's part of the brothers' clashing ideologies and outlooks on how best to save the Earth from teh demons.
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