So I'm new to Markarth and was hit with this mission and decided to follow it through since I was seeing so many forsworn in the area, and they just tried to kill a seemingly innocent shopper. Turns out she was working for General Tullius, but that doesn't mean she should be murdered. The hit was ordered by Thonor silverblood I believe, who is using Madanach to control the forsworn to do his bidding.
I think I have everything correct so far. Now it gets confusing, I get sent to jail and let's say I choose the path to kill Madanach, a madman who seems to want chaos and revenge against all people regardless of whether they committed any wrongs. The game seems to treat it as if I've chosen to side with Thonar, and he gets the Jarl to exempt me from what I was framed for. Is there no option that basically says (and this seems like common sense to me) that half this city is corrupt, and the silverbloods/forsworn/city guards working together need to be brought to justice? Seems like the only thing I've done, is help the corrupt family deal with one of their agents who got a little out of hand.
The other option is I support Madanach, and fight my way through half the city to help him escape, and kill the silverbloods, but I've basically alligned myself with the forsworn.
Is there something I'm not getting? Shouldn't, after all this, Thonar and the silverbloods be thrown in jail for all the stuff they've been doing? When I went to the Jarl before, it seemed obvious that the silverbloods and the Jarl don't like each other. I thought, good, I can have some support for uncorrupting the city, but Thonar got my name cleared for avenging his wife I think. Is the Jarl under the silverbloods influence as well?
Just seems like there's no good option here. They killed the guy I had to meet in Talos (guards too) and then they tried to kill/arrest me.