I can well imagine that one of the thoughts that led to the cancellation of this route was also the following:
If this route continues, surely at some point people will expect such options to be possible with the others. This would sooner or later lead to rather toxic people become aware of this project and if you look in other threads is different than here not infrequently a rather nasty discussion culture emerged. This is not necessarily the fault of the developers, unless they deliberately target this clientele, but I prefer then but the discussion culture prevailing here. For example, Killer7 has managed to keep discussion and debate at a reasonable level for its My New projects, even with more controversial characters like John's sister Jessica (MNM).
As for Tanja: I, as an individual, probably would have ignored her after the retaliation. I take the position that one should not stoop to the level of such people and took the nice route. My concern with imitating her would have been that she would have then only felt confirmed in her own modus operandi and she might have gotten worse.
Yes, MC repeatedly says that he will be bad to those who are bad to those close to him. But I wonder: if Lucy says she is done with Tanja and the events from the past, why continue? Strictly speaking, it would be similar to what Elaine did. And that would bring us back to doing the wrong thing for the right reasons.
And if I scare you with my wall of text, don't worry. I like to ramble on with my thought processes and then they like to become little essays.
I agree with you. In the end, it's Killer7's decision and the success of his My New series clearly says that the right decisions were made.