You and me both are thinking in a very similar way. I would really like Lins story to be able to avoid that thing but it is kinda entwined to the whole storyline overall unfortunitly.
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Agreed, it almost did ruin it for me but the Ashley arc resonated too much with me to just stop playing.
I wonder how much money i would have to dump on Runeys head to make an alternative choices to avoid this whole thing with the guy in town where it all started (seriously we had such a great time with Lin until he showed up and ruined all of it...), oh and while at it let me take Moon to the damn backroom when we do stuff in the bar...
Something is wrong, slavery. You were disgusted by what they did, and rightly so. In this event, you played by his rules to prove to him that loving your elf is the way to go. He's a very powerful person so any chance you get to influence him is obviously a great idea, and this is Lin's goal the whole time. Win the competition, prove to the world elves are to be loved. Lin goes on to fight for her freedom while you help her as much as possible.