Oh wait.. you want to redeem Loghain?
Yeah, you have the procedure right.
Yeah I mean it's pretty handy to have around this sort of jerk-ish character in the event that you want him to kind of make amends for something, which he seems willing to do.
The thing about Loghain is there is an internal logic to all his actions, it's not random. If he was just pure savage I'm hateful then things might of been different, but I can completely believe him in the Landsmeet when he says that Fereldan and order and such is his highest priority, and that he was wrong about the PC.
Once superiority is established via the duel, he kind of suddenly empties all his rage and such.
Then, why would you dismiss someone who has such obvious charisma and power? There's definitely a use for that kind of thing, hopefully, as long as it's not directed at kind of the wrong causes or put in the wrong places, such as at my PC, that was one of the biggest problems.
So I mean it's kinda redemption, I guess.. but it's also I think just kind of common sense. It would be like throwing away a Panzer tank that you were fighting against that's now yours.