What would you have done in Michael's shoes?
Forget about the whole "Pete being a real psycho" thing. If a police officer, who seemed like a good guy and who was starting to become a friend, brought you to the middle of nowhere to confront the man who had held a knife to your loved one's throat, what would you have honestly done? Would you be like Michael and do the right thing in the end? Or would you take the officer up on the opportunity to deliver a little payback?