Now I recently did the pilgramage to the Puzzle Canal, and made it to Krazzt. I talked to him, and he seemed bored and feeling undignified of his "post".

So Dremora are good or bad? Im confused are there bad dremora AND good dremora? so far ive only seen two good dremora, that was Anheardia(or something along that line) and Krazzt. Both seemed to dislike us humans, yet they live among us.

is this like a deal between uhh, I dunno, Lord Vivec or something that Dremora have to be little slaves. I mean, Krazzt just stands next to that shrine for years, with no bed or anything...

I undersand where your coming from, both he dremora your talking about have terrible lives, just standing there waiting for num-skulls like us to come and give them a sword or taunt them, by the way does the number of swords in the treasure chest in the puzzel canal mean thats how many people got that far in the pilgrems path?

Krazzt is immortal. Standing next to a shrine for a few years is probably considered easy, though boring, duty. Every so often, he gets to kill an adventurer as a bonus. Maybe Dremora change the guard every century or so?
I don't think there are any good Dremora. They do have their honor though. Krazzt is guarding the shrine out out of respect for Vivec. Mehrunes Dagon and Vivec have fought each other enough to have an uneasy mutual respect.
If Krazzt was not bound by this, he would do his best to kill any human. He would dine on your character's flesh.
Visit Palansour and you won't feel sorry for the Daedra.