It always struck me as a bit of an over reaction on James' part. I honestly wish that they'd revealed or inferred at some later point that he had ties to the Enclave, which would make a lot more sense and be a decent twist to the story.
Indeed. To be honest, killing himself did absolutely nothing and actually later on caused the death of his only son. Colonel Autumn basically offers James a job and doesn't seem to indicate that any harm would come to the scientists. Besides, he could have done more damage sabotaging Enclave efforts as a double agent.
I would have also liked if it turned out James had worked with the Enclave before. To me, it would have been a better story if James and Catherine had been Enclave scientists and James left for moral reasons with the LW (pretending that Catherine had died in child birth, when in reality she stayed with the Enclave). James and the baby LW head to vault 101 and then the story begins from there.
Best parts of this are:
1. A twist to Jame's story
2. It makes sense joining the Enclave because the LW is pure human.
3. The moral decision becomes a choice between siding with the people of your birth, and who your mother supported, or deciding to follow in the footsteps of James and helping the waste in a more substantial way.
It also could have led to a more dramatic meeting between Autumn and James.