"He sought my pity, but had he any right to pity?"
Yes, I believe the soldier had the right to persue Simon's pity. In a since the soldier felt sorry for what was happening to the Jews after what he had seen and felt the need to tell Simon his story whle asking for forgiveness.
"Did a man of his kind deserve anybody's pity?"
Yes, because he was doing as he was told by his commanding officer. Like the bible says, "Love your neighbor as yourself." The Soldier is the neighbor to Simon and Simon should forgive him for what he did even though it was really bad.