I save Valaste on my friendly/good characters, but I have let her go home with Uncle Sheo on a few of my more unscrupulous toons since she seems happy enough just rolling with whatever. Plus, you know... Skill Points!
To be honest, I can't say for certain which one I chose most recently. That toon was pretty morally ambiguous. The character I leveled back then ended up being deleted to make room for something I liked better, and I haven't bothered with the MG quest line on the replacement. Sorry.
If you're about to press a gun to my head and make me guess, though (please don't! I'm too young to be coerced!) I think I chose to save her, and got the staff that I cared exactly 0% about. For me it's more about the story when doing these longer quest lines, so the rewards are kind of forgettable for me.