+iny ©at people

I don't think we're going to persuade Wax to like us more through rhetoric, especially as it's quite likely that what we do next will continue to upset him.
I also don't think he'll find this path of reasoning particularly persuasive, given that presumably we are not the first new player to play this game and presumably this does not happen in every game with a new player. I got the impression that auto balance is rarely invoked, and also that pretty much nobody had ever tried creating a completely useless magical knife that propagated to the personal space of every player.

I'm also not 100% convinced we aren't going to do it again, but he doesn't need to know that. I'm totally fine with lying to Wax.

But all that said I guess it still probably doesn't hurt to try.
Once we talk to him, which as you said shouldn't be yet.