He can be killed to retrieve pantaloons after given back to him, but killing him results in reputation loss.
Golden Pantaloon DecisionEdit
If you return the Golden Pantaloons, the owner thanks you for your honesty and rewards you with 100 XP.
…but will you? Those self-same items can, if carefully imported through all editions of the game, be combined with their counterparts to craft the Big Metal Unit, the most powerful and unique magical armor in the game.
Alternatively, you can return the pantaloons and kill him afterwards to retrieve them, though that will result in reputation loss.