Get the gauntlet and the weapon, stow them both and DO NOT PUT ON THE GAUNTLET. Frankly, it might be best if we toss that thing into SMR-obliteration, but not right now.
I agree. The gauntlet is nothing but trouble. We coud try an atom smasher before we throw it into SMR, though.
Seeing as the first four options (We didn't get to roll, so running and screeming would've get us hit. He's blind, so the smokescreen wouldn't have had any effect. This guy had been fighting for ages, so killing him with rock and pipe would've been hopless.) didn't work, I assume the fifth would've brought us to the guy as well. We should avoid the guards.
Even though Slowpokez has mentioned that he doesn't like plot-armor, I say we cut of one of this guy's fingers(use the axe?), take all of his stuff we want and burn him just to be sure.
I think we should take his cape in addition to the gauntlet and axe. Maybe we could sell his glasses to the pipedwarf? We should see if he's wearing any jewelry.