Neither is actually true : Saladin was as much demonized (litteraly) by contemporary chronicles and depictions than some that "integrated" him in the medieval scope.
Latin lords probably had an overall better opinion of him, but not all of these far from it.
The good contemporary depictions you have about Saladin are less about chivalry and such, but rather in order to pull unfavourable comparison to Latins (as Gilles de Corbeil's account of Saladin as tolerent and that wasn't a Christian because he was turned off by priests), or to abide by a chivalrous narrative that tended to depict everything under its scope (similarily the same way Andalusian society is depicted as a feudal one in the Song of Roland).
It's far from being restricted to Saladin, Noradin beneficing from a relatively similar treatment.
Why Saladin got more mention with time? Mostly because he basically ruled a superpower that was directly at odds with Europeans, and the narrative exotism only grew up (Book of Wonders being a good exemple).
Eventually it became less and less about Saladin (at the point his religious background is barely mentioned, if at all), but about the narrative of the wise and fair ruler.
By the XVIIIth century, it only get an even more caricatural treatment, and that's from this era and the XIXth, that the narrative of the eastern chivalrous ruler really made it in popular history.
Latin lords probably had an overall better opinion of him, but not all of these far from it.
The good contemporary depictions you have about Saladin are less about chivalry and such, but rather in order to pull unfavourable comparison to Latins (as Gilles de Corbeil's account of Saladin as tolerent and that wasn't a Christian because he was turned off by priests), or to abide by a chivalrous narrative that tended to depict everything under its scope (similarily the same way Andalusian society is depicted as a feudal one in the Song of Roland).
It's far from being restricted to Saladin, Noradin beneficing from a relatively similar treatment.
Why Saladin got more mention with time? Mostly because he basically ruled a superpower that was directly at odds with Europeans, and the narrative exotism only grew up (Book of Wonders being a good exemple).
Eventually it became less and less about Saladin (at the point his religious background is barely mentioned, if at all), but about the narrative of the wise and fair ruler.
By the XVIIIth century, it only get an even more caricatural treatment, and that's from this era and the XIXth, that the narrative of the eastern chivalrous ruler really made it in popular history.