It would be a kind gesture, considering all the agony he's been through so far, but the decision is up to you.
If you decide to release him, you'll want to make sure he's going in the direction of his home, not in the direction of you.
Go downstairs to activate the outer shield before you turn on the power. After he bids you farewell, go back to Tomahna to return the Releeshahn book to Atrus.
Now that I've beat the game, I'd like to find out all the ways I can loose.