I can definetly agree with the 2nd part of your comment, including the Stockholm Syndrome. The least thing we can deduce, however, is that Lance (if that is really really his actual name) does feel guilt and did feel something akin to friendship for the MC and his former teammates. Also, why does the author show him naked, if he's never going to be around again? I think that is a valid question and foreshadows nsfw scenes... By the way, I'm glad I'm not the only one not writing Lance off, yet, even if it seems irrational so far.
What I can't completely agree with is "the best story telling and world building VN" part. While Remember the Flowers is wonderfully written, that title still belongs to Pervader no question. But I have to say, as long as Lance will redeem himself RTF is pretty damn great, unlike several very popular and old FVNs, which turned out to be dissappointments...