I did that exact thing at that exact spot in the game. Thank's Shamus, now I feel horrible about it.
Admittedly though, I have to blame the game a little bit for offering expensive gear to buy (like a much-needed backpack) early in the game that you can longer purchase after a certain event. Because of that, I needed as much money at that point as I could get. So really, I needed their clothes more than they did.
Ah, justifying cruel deeds makes me feel good.