Even the turning of the aeons cannot keep a good pp joke down forever
As far as the consequences of the MC's choices if this were a "realistic" setting... People forget, but in reality an emperor did not have the power to *personally* smash a city flat. Most of the respect and fear was not reserved for the emperor(personally), but for the emperor(who could order your death with a mere word).
In this setting, however, cultivation is a factor, and anyone (even an emperor) has the potential to be *personally* powerful. Already, the MC has demonstrated a level of personal power equivalent to large-scale tactical weaponry... something that was never a factor in our historical reality.
The difference between "emperor can order your death with a word" and "emperor can, personally, destroy a town in a second" creates many differences relative to actual history. A setting with cultivation would not merely be "historical culture, plus maaagic!!!", thus there would be many things that differ from the history (and even psychology) that we're used to.
And, cultural differences have a place in this, too.
An example: "trusting a convict" happened, to great positive effect, in several instances in actual Chinese imperial history. And, history records more than a few cases of harem members who were added to the harem after the murder of family members. A few of these cases ended with the harem member being both trusted and loyal throughout their whole lifetime.
Another difference between historical reality and modern experience is that, in an environment where a single misspoken word can result in the expurgation of an entire lineage, families take great care to train their descendants to not act purely out of human emotion (at least not immediately). Failure to do this results in families dying out due to (intentionally or accidentally) picking fights or insulting parties that they cannot defeat. Anyone who cannot learn this lesson, cannot be exposed to the public, or cannot be allowed to survive and hazard the family.
(The traditional "arrogant young master" trope actually underlines this: any family that does not fear the consequences of letting arrogant and undisciplined scions roam about in public is a family that is itself powerful enough to weather whatever consequences may arise from some idiotic young master's ego. And actually letting such a young master loose on the public is itself an arrogant display of the family's power.)
Human psychology is pretty constant, but it is shaped by culture, expectations, etc. As a result, almost anything *can* happen... and what is most likely to happen (given the exact same situation) can differ greatly due to even relatively minor changes in time, place, and culture.
But, most important of all, this story is entertainment. And, so far, it's quite entertaining :)