In the first game, if you choose to spare Milich, Pahn, Cleo and Viktor will flip out at you, asking if you're really gonna let Gremio's murderer live. Cue Flik calming everyone down and supporting Tir's decision, showing that he finally, finally accepts Tir as his leader. The greater awesome is how the game handles forgiveness. It really was tempting to just execute Kwanda Rossman and Milich Oppenheimer not just for murder on a personal friend, but the fact that they have used something to commit great murders, from Milich's pollens towards your army to Kwanda's Burning Mirror to the Elves. But if you keep your head high and choose to not give in to vengeance and karma, you will see the biggest picture that they were not fully responsible due to brainwashing and eventually rewarded with the Golden Ending. So yeah, it's quite good that the game actually rewards forgiveness than spot-on vengeance. The sole exception is Kraze, but considering how he was such a small-time crook compared to the generals or how his victims weren't in large-scale, it can be forgiven to not spare him.