I understand the "Change it..." options because they add more consistency.
I honestly think there's a case to be made for each options and I'm sure there's been some discussion about it at Larian Studios.
But, personally, I would prefer to "Keep things as they are" because : - I don't want to kill kids. - I find it interesting to learn that Halsin is capable of doing so. - It opens an interesting dilemma when fighting with Halsin against them : to let them go (the ones that survive Halsin at least) at the risk of having them calling more goblins or to kill them to contain the fight. No such event with the Tieflings (that I know of at least).