I liked the idea of paying the price of your choice in a significant, permanent way, but a debuff so HEAVY should definitely come with some significant benefit to compensate it.
Right now the quest just makes a mockery of the player denying to him the reward that was promised AND giving him a permanent debuff on top of it with no upside whatsoever.
+1. I like the choice, they should keep it, it's narratively interesting. But there needs to be more to it to make it worth taking on the debuff.