Jesters achieved their objectives, they kept Sparta safe from a NonPanda notice, then stalled them till Sparta was in a position to vulture. Allowing the deal-breakers to profit from their actions is rediculus, I hope that is not what you're advocating...
The razekills were not a punishment but merely an arresting action. Similar to a police officer shooting armed terrorists.
Should the terrorist be released at the moment he drops his gun and stops shooting? Perhaps if he voices an apology?
I'm trying to understand your rational, are you extremely naive or... ... ... not.