The compensation was set high for the sake of the later plot. The protagonist's goal was not just a single Baron. These people were currently the protagonist's rivals, but what about later? What Northern Province lacked most was people. Someone capable of rising to prominence in Northern Province would be the greatest resource for the protagonist. How to win them over was what mattered most. And so what if the other party was also a lord? There were Noble Lords under the protagonist's father and under other lords alike, so why couldn't there be Noble Lords under the protagonist?
You could tell from my setup that Marquis Lehman did not handle affairs and did not want to handle them. That meant Northern Province had a power vacuum. Who was that being left for???
Besides, the protagonist had won, so naturally the protagonist got to decide the ransom. Why would the other side need to agree to it?? Who exactly won, then???
And as for some moral high ground, what moral high ground was there? I have said many times that there was no order in Northern Province. Strength was king.