I went down the path of arbitration as well. I have a problem bringing myself to choose the obviously evil choices in games and that was the only real "good" solution to that situation. I was pleased shortly after to see the ghouls and smug arrogant richies walking the same halls and I didn't find out that they were all murdered until long afterwards from hearing it over the radio from Three Dog. I thought the game had glitched at first and incorrectly saved my resolution to that quest. I wish the rest of the game was a well set up as this quest was.

@Spike
Just an aside, why do people keep using Mother Teresa as a symbol of moral quality? If you actually look into her at all you'll realize she belongs in the same category as the Hitlers of the world, not on the other end of the spectrum. All she did was group a bunch of people together in a buildings, deny them proper medical care in order to cause them to suffer because "In suffering you share in Jesus' sacrifice"(paraphrased), and then bamboozle money out of rich people and governments to fund her convents. She was just a religious zealot who destroyed other people's lives to exalt her bronze age mythological sky-daddy. I really wish people would stop referring to her as some bastion of humanitarianism.