We can argue about the relevance of all the arguments in this thread but one thing the OP is right about :
Larian are not doing a really impressive writing job, to the least.
Lot of situations lack of options, are too restrictive and even sometimes absurd (Shadowheart disapproving when you refused to throw rock on the Halsin-bear...)
This particular moment is terribly strange.
If you attack the goblins you will lose your approval immediately, but if you choose the option "I should do same to you" ,you don't lose it even though it ends identically.
As for the limited options, well, this is the price for full voice acting.
