Nice, I was wondering about this as well. I kept Josh because I figured handing him over would be like rolling over to STAG, and if they didn't give you a choice, your character would make the most senseless, dangerous, ballsy move available.
To me, keeping him was the most logical choice character wise. Why would the leader of the MF'in Saints bow down? Also I thought Nyte Blade would be an awesome homie to have, and I was right. I call him ALL the time, definitely a good decision.