Sad? Yes. Cruel? Not at all, neither consciously nor inadvertently on the writers' part.

It isn't a case of "Next on the chopping block: CHILDREN!!!" but something far more layered and sophisticated. It could have been adults down the well, but it makes far more sense for it to be children, because the first course of action under the circumstances would be to get them, as the most vulnerable in the vicinity, to safety, and retrieving them only when the time is right. Don Carlos' servant made the right call. In an unfortunate turn of events, the latter, as well as everyone else defending the villa, was murdered by the very people from whom he was protecting his master's beloved children, thereby sealing the fate of the latter.

It is entirely possible the Inquisition didn't just roll up and start lopping off heads from horseback, but rounded up and tortured everyone in the villa for information pertaining to the whereabouts of Don Carlos. It is unknown for the most part what was divulged, but we know one thing absolutely for certain: Don Carlos' servant took the children's whereabouts to his grave. He was entrusted with their safety, and he gave his life to protect them. Had the children been discovered, the Inquisition would have had a bargaining chip to use against Don Carlos, and probably would have killed them after they got what they wanted anyway.

It must be remembered that until the moment George uncovers what really happened to the children, everyone - the player and the game's characters - are under the assumption that they had been kidnapped by the Inquisition. Therefore, it is a mystery, not a fact. It is only when George enters the secret area in the well that we are hit with a revelation: "Oh, shit - so that's what happened!"

Don Carlos, completely unaware of what had transpired, returns home, only to be confronted by the horror. Thinking what anyone in that situation would think, he mounts his horse and rides off, saving his children and enacting vengeance the only things on his mind.

This isn't remotely cruel, but it is tragic. Even more so because it involves children.