Legend

They believe you enough that they aren't willing to challenge someone who might've killed a medusa and they'll pack up and be gone by morning.

There's probably a moral issue of the fact that your lie might very well send these people to their deaths by the medusa that's still there, or if assuming they survive, that they'll come back here for revenge sometime in the future. But for now you've gotten rid of them which should restore a bit more order to the village. (And quite frankly they were jerks anyway)