No, don't kill him!
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.spoil.
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you should finish up with the fake eggs Phaere gives you, the fake eggs the guy didn't kill (Solfenin) gives you, (eventually) and the real eggs you find at the temple, behind the golems. You give Solfenin's (sp?)eggs to Phaere, Phaere's eggs to the Mother, and take the real eggs to the dragon... (well, you do if you are playing good!)
As for a save, don't you have an autosave, quicksave or regular save from before the event? Unwise!
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Smile! Life is too short for bitching!
Fljotsdale