I think you will agree that was a moral compromise. Do you think we were wrong to accept that compromise?
I'd say it's more an act of partial surrender than of ethical compromise. You are not abandoning your principles when you surrender to an aggressor that's stronger than you. It is comparable - in a much less dramatic degree, of course - to what honest people do every time they fill their tax forms or give their wallets to an armed thug who threatens them.
(It's a horrible story you tell there... such deal, did it really work out? I mean... the terrorists released, they just... stopped being terrorists? I imagine every step they took after that was closely watched, but still)
Yes it worked. Both sides gave up their principles...
How conveniently you ignore my first paragraph.
You don't give up on your principles when you surrender to someone threatening you.
In situations like Northern Ireland, Bosnia, Israel/Palestine or wherever you have these tribal type wars, both sides are aggressors and both sides are victims. Neither side was defeated. Neither side could be said to have gotten justice. Both sides abandoned principles that good men died for.