The price of power is letting the hag live. I don't think that should change.
Rewards are not the issue.
It's the story dialogue choice that doesn't respect "Deception" in its true meaning of the word and all the hard work that went into achieving it, which ends up breaking character immersion by not allowing the player a choice to attack the Hag.
Especially since there is a similar encounter in the game that respects this immersion of choice.