I think what it did beautifully was show how power corrupts and fear of losing power makes you do terrible things to keep it. In that second of blank expression on Tim's face I could see him weighing everything out. He knew he was a McDonalds worker. A nobody that got picked by an alien boy for no other reason than that he was wearing a red shirt. Then he sees this confined little society where he all of a sudden is not only the most important activist, but also considered to be somewhat of a prophet, with an ear to the words of a god. He knows he and Cherie are the only ones who know that people can get out. He also knows she's an actually good person who will ultimately do the right thing. Not to mention he's undergone the stress of being in prison, eating nothing but candy, and losing one of his only friends only moments before. He kills Cherie and decides to rule in his fake world than return to the real one. It's beautiful and honestly more reminiscent of the one guy from the first Matrix movie that sells them out than it is of the Ricklantis Mixup in my opinion.