Loki surrenders himself to the WG and becomes a Holy Knight in exchange for the non-combatants of Elbaf being given a pass? Redeeming himself in the eyes of Elbaf for all his many misdeeds (independent of the alleged Harald killing that he is now exonerated of) while also circling back around to the fact that they originally wanted to recruit him? AFTER we get a whole arc showing how dangerous he is, only to have that flipped around on us at the end?