As I said, the initial impact would be relatively limited. However, given that it would weaken our primary point of opposition to Purity, I don't think it's an unreasonable slippery slope to conclude that the Puritans would have continued to make further gains in the aftermath unless actively opposed - and since we didn't resolve the half-exile issue at all, acting against them again would just mean we'd kicked the can down the road while weakening our own ability to resist. And, again, this is on top of failing to rectify the existing and morally reprehensible abuses that were occurring to the half-exiles. It's also worth noting that the worst abuses were in the countryside, and that while not all of our rural farmers were half-exiles, all of them could be half-exiled for political or personal reasons and this threat was used to extract concessions - so rectifying the half-exile abuses also removed that threat from the rest of the populace, thereby improving the lives even of those not actually subject to the punishment directly.
As an aside, I should also like to note that your conditional - "if our objective was greatest good for the greatest number" - is deeply flawed. Your subsequent sentence implies that you meant "greatest number of Ymaryn," which is an unnecessarily provincial approach - if seeking the greatest good for the greatest number, all humankind should be included among those whose good we seek. By accepting refugees, we improve the lives of those in need, and by sharing our knowledge with our neighbors (including, but not limited to, via the Artisan Games) we raise the quality of life for their populations. Consider how much good we did for how many by giving the Khemetri our Sacred Warding techniques - that good was only possible because of our openness and positivity toward outsiders. Any analysis that focuses solely on one's own people will intrinsically undervalue the importance and benefit of xenophilia as opposed to xenophobia.
Fair enough... I guess it's hard to care about the betterment of other empires populations because we rarely see them, but then again we hardly ever see the rural poor of the Ymaryn.
That said I suspect that the lives of the rural poor will get worse than initial half-exile conditions simply because without the threat of reassignment/demotion there is nothing to stop patrician abuses from piling up, then normalizing, rinse and repeat until we hit historical serfdom conditions where the hard stop for "how much you can abuse the peasantry" is "they might rebel if they have nothing left to lose."
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