Well of course, like, I couldn't live with myself probably as well after doing something like that but.... at least James realized what he's done so that means there's still something good in him left and the worst punishment for him would've been live a life knowing what he's done and In Water he chose the easy way out. I'm not saying that everyone who did the same should have a happy life, no, but also not everyone truly regrets the things they have done too.
Anyway, playing this game is such a relief knowing and remembering that in this genre, there can be a better story than some braindead BS RE has for example and it makes you think, ask questions etc. and that's the undying beauty of the SH series, well, at least until SH4 came out, which is not a bad game but.... well, you probably know.