rev_01, you really like this VN and the dev and that is fine. All things considered, I also enjoyed this for the most part. Something like a 3.5/5 in my book.
This is a mafia story though. There are things we have come to expect from this world through all the movies, books, news, documentaries, etc. It's not a rainbow party where all we gotta worry about is getting some pussy. The narrative and actions of characters need to be believable within the setting and universe that is laid out. There are rules, customs, and expectations. Frank loves Paulie. Even after this incident, he could understand and still love him despite all his faults. But he would almost be obligated to give him the Kiss of Death here. If word of Paulie's stunt got out, which it obviously will since rival gangs are involved, and Frank didn't do anything about it, his leadership and authority would come into question. At the very least, Paulie should be exiled. Barbara, on the other hand, would get no such mercy.