This made me laugh. I wonder what TLOZ-related incident could prompt Link's cowardice? Perhaps they shouldn't even ask him for his weaponry. They should simply ambush him. They're Lynels, after all! They're lion-people! DEX scores are at LEAST 17 based on racial modifications!! I think they could ambush him fairly efficiently, wouldn't you agree? o.oIt's only after they've left that he realises that he could've just killed them with the sword. "Darn!"
The Lynel treasure hordes may as well contain a good supply of Rupees as well. Perhaps you could even give them in to Zelda's kingdom for a tribute and receive a health upgrade (HC or HCP, whatever you want.) as a reward?