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There are two other instances (in the series, not counting the Little Sisters of Eluria) with Roland displaying a similar mercy: In Lud, he doesn't shoot Tilly (one of the Grays) when she begs him...

*Skirting around the discussions of virtue and perspective and going back to the Original Question*:

I don't see Roland's letting the guards go as motivated by mercy even if its a merciful act. I...