How far ahead have you read? Once you get to Gracklestugh, Buppido gives the party the slip and runs to his lair, which is pretty wonderfully atmospheric: the entire floor is difficult terrain because of all the dismembered body parts of his victims lying around. Unless you're hellbent on having him sabotage now, it's worth keeping him alive until then.
I feel the same way. He is going to give in to his rage and kill people sure, but he won't be caught. I almost got one NPC killed but the group rolled 22 Charisma and he sheathed his weapon peacefully and grumbled a bit.