Even if you don't have to kill the children, I'd still like a way to get through without a fight at all. Don't see why you should be compelled to side with an animal over adult goblins either.
By that time, at least 3 people - or even 4 - have told you, that Halsin has the presence of a bear, if you have talked to anyone in the grove and paid attention. ANd even without that - there is a bear caged and mistreated, maybe if you play a good character, you might want to put an end to that?
It comes down to personal choice again. And the fight there isn't really hard. Just let the kids run away and deal with the rest
