It's only after they've left that he realises that he could've just killed them with the sword. "Darn!"
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.o

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?