Too risky. Werner already knew the location of the lab, so Gus couldn't take any risk of having the other German workers find out. If Werner was kept alive, he'd probably figure out that they were plotting to kill him and his workers, so it would be a huge mess.
While the other poster above had this good point, your point is also a good one to consider:
"I agree. It's a massive risk to off him like that. Even if they can provide a believable story for his wife. They'll always be some doubt in her mind. The sudden abandoning of the meetup like that. Very questionable."
It seems both Options A and B are terrible, and Gus had to pick one. I could see it being a problem if Werner lived. Personally, I believed Werner when he said he wouldn't do something like that again, but when trust is broken once like that and so much of a mess is created, I can see why Gus made that decision. It's awful to see Werner taken out like that, but from Gus' perspective it's rather in line with his character.
But if Werner is offed, there's still a lot more potential problems ahead. Mutiny (or sabotage) from the crew could be one, and German investigators aren't going to take too kindly to one of their citizens doing "secret work" over in America where the husband can't even tell the wife what it is.
Season 5 is going to get
really interesting!
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