I personally see more of the former. Everything was just one thing, therefore nothing, but with one "word," disparity was born. Light and Dark, Above and Below, Hot and Cold, etc. This gave things meaning and comparison.
Now Good and Evil are harder to describe. I like to view Good as "Understanding" and Evil as "Misunderstanding." I believe in free will, and free will is exactly what allows Evil in the world, in fact it is the very window through which it is allowed to exist.
Those who understand their place in the cosmos (divine understanding, not just knowing your place) will choose to do good, while those who do not understand will do Evil believing they are doing Good.
Think of what Jesus said as he was being crucified: "Forgive them, Father, for they know not what they do."
The romans believed that they were punishing a heretic. They believed they were doing the right thing. They, however, had Misunderstanding, and actually killed the Son and physical manifestation of YHVH. If they Understood truly what they were doing, they would not have done the great Evil of killing Jesus.
The difference between Good and Evil was known when the serpent had Eve eat the forbidden fruit. Rather than spending their lives mindlessly wandering the garden of Eden, she and Adam gained the ability to Understand, though they also had the potential to Misunderstand. This is where free will was made, as well as the capacity for Evil to be done by human hands. I don't believe YHVH made Adam and Eve with free will, or at least how we understand it. Remember, Misunderstanding is not here yet, and thus choice doesn't truly exist, at least not in a meaningful way. Perhaps he gave them the ability to make their own decisions, but it was more of a Morton's Fork, since Eden was a paradise of perfection. Nothing bad could happen, no matter their choice.
All save for the Tree of Knowledge. The Serpent, knowing full well that a world of only Good is no world at all, gave Eve the knowledge required to achieve divine wisdom. Thus Evil was made as a by-product of free will, one necessary to achieve apotheosis: One cannot know Good without knowing Evil.
Thus All is Good and Divine, though Evil exists so that we may truly Understand what it means to be Good.