Chapter 7 also had some comedy value. The game is set in the Forgotten Realms, the most Tolkein-esque of settings where Good and Evil usually tends to be evidenced by appearance, and not one person in the city thought that guy with glowing yellow eyes constantly rocking a suit of demonic armor might not be the best candidate for coronation.
he used mass charm spells and/or charisma boosting magical items when interacting with the populace. :P
I think we can assume that he didn't always wear the armour and have his eyes light up, instead saving it for special occasions like intro cutscenes, assassination attempts at night and coronation ceremonies. He possibly went with the candlekeep outfit when interacting with people outside of his group, until the time was right.
I do recall some people talking about Sarevok creeping them out in BG, but yeah, people were a way too gullible at times. More so in Candlekeep I thought.
I also liked chapter 1 and 7 the most, though there are many fun/odd/tragic quests throughout the game. I really liked the Durlag quest, except for the demon knight (too easy and kind of goofy) and the room with the wyverns which kind of felt out of place. The dungeon design there was a good sign of what was to come in BG2 and probably the best in the game. I also liked the werewolf island part though it could've been longer and actually let you pick the other side, and the ice island which had some interesting lore and left you guessing how it came to be etc.
Least favourite quests were probably the zombie farm (felt random and tacked on), the shadow druids (simplistic and they were too weak), and maybe the bogeyman (just a strangely put together quest).