I get what you're saying, I really do. But the reason I belabor this point so heavily is that, based on everything leading up to that point, I do not believe sparing Finnabair's life would move the needle. Indeed, it has no effect on Finnabair whatsoever, she's eager to keep fighting. It's only Medb inexplicably going from "traditions are sacrosanct!" to "eh, close enough" that forces Finnabair to call off her revenge.
I can't quite buy that. Given just how hostile Medb has been to that point, I think she'd see this as proof the MC was literally too stupid to live. If the MC really felt peace was more important than his life, why did he fight Finnabair at all? Just throw down his sword and say he WILL NOT kill the people he came here to help. That's also something no Templar would ever do, though I doubt it would matter to anyone except maybe Ailill. By the time the MC was fighting, he had no reason to think there was a way to stay alive short of killing Finnabair, and he clearly wanted to stay alive.
Medb's about face was not, IMHO, well handled - unless you think she was just grasping at straws to save her daughter's life, which I doubt was the intent. I guess you could say that the MC disarming Finnabair "proves" the MC had the strength to back up his lofty ideals and thus forced Medb re-evaluate him, but a) the MC had no way of knowing that at the time, and b) the MC hadn't actually won the fight yet. If Medb hadn't intervened, the MC was going to die (unless he eventually bit the bullet and either killed Finnabair or maimed her to the point she literally couldn't fight anymore). In fact, if we want to get technical, killing the mercenary life in Chapter 1 earns a Medb point on the grounds that "
leaving a potentially dangerous enemy alive is, again, a stupid move." Finnabair was far more than a
potential danger at that point.
I wonder if the scene would have worked better if Finnabair wasn't quite as defiant once the MC disarmed her? I'm not saying she should suddenly blubber for her life, but something to give us a sense that she would prefer to live if that was an option might have helped - a scared look that belied her angry words, or a resigned request that the MC get it over with, something like that. It would make Medb's intervention feel more grounded, and Finnabair's about face the next day less incongruous. (It would make Medb's ire if the MC actually kills Finnabair a little less hypocritical, too.) That way it's less a case of Medb suddenly rushing to the MC's aid, and more a case of him wearing down Finnabair's resolve on his own. Alternatively, Medb or Ailill could have flat out told the MC that the duel was mandated, but death was not. That would explain why the fight ended, but might be a little too on the nose.
Ah well, spilled milk at this point. What we got works well enough if we're willing to suspend our disbelief a little harder. But I do think we need to suspend our disbelief.