I just interepreted that as a threat to try to prevent future kidnappings. It was the same argument Olaf's wife used to beg for their release.
Now, if the newsies would just pull out of there and stop giving the terrorists the legitimacy they crave...
Olaf gave that "poor-Palis-that-need-their-story-out" rant AFTER he was released. There's NO way on earth that what he's spouting now will deter future kidnappings or other terrorist acts.
Confucious say "Once released, to thine own self be true, bubby."
Leni