[@FallenTrinity] He isn't making peace per say. He wondered why all these events happened in his long life. Which is why he is an Ancient Black Dragon.

He accepted that he cannot gain anything from holding these two people hostage any longer. And that was 12 long years of tormenting Jacob and Patricia, which are the parents of the young girl in the Tavern of Sunfire. He is only going to escort them to the Capital of Vrondi Kingdom instead of all the way to Sunfire. Even though he did say, "Anywhere" he only said that to keep his daughter happy and trick her slightly. He has been around a lot longer than her to not really truly trust the Descendants of the ones that did the butchering. But he is willing to try something different.

The Battle Axe, he gained he got it fair and square. He will never return the weapon that allows him to see everything that the Flowerdancers hold dear in terms of their ancient and powerful weapons. He told his daughter this, "I captured the overly zealous female from the Flowerdancer family" but in reality, he did this. He used Terror. She dropped the weapon. And he grabbed it and laughed at her completely paralyzed in fear. He told her to tell her family she lost this weapon to the Terror Dragonlord. And told her that her phobia of losing a family member was the reason he won. And that's the reality. He told his daughter the lie, to make it more believable since he is a Terror Dragonlord, and all dragonlords do the capturing thing. :P

Edit: tl;dr, you are correct. He tricked his daughter. He can't really be called the Terror Dragonlord if he stops being evil now? If you didn't read the above. Of what I wrote above the Edit. lol