The whole point of DRK (storywise) is to illustrate that being "good" sometimes means it's necessary to act outside the law since there are people the law can't touch. The people who do such things are criminals as a consequence, but that doesn't always equate to being "bad" or "wrong." (See: Chaotic Good)
Was it right to do this? Well... it certainly wasn't legal, but "wrong" is another matter altogether, especially when we didn't throw the first punch.
Further why does it matter if Lowdy incited a riot to sabotage a peace talk? Just because she's a criminal doesn't mean she shouldn't be treated humanely, especially considering she's shown to be genuinely remorseful for her actions in the selfsame quest.