Actually, Hill only cares about the Righteous Knights; he doesn't want the people he identifies with to be killed by tedious political struggles.
It's nothing for Neverwinter to shift from the domain of the deities to the faction of the arcanists, but do they have to use such despicable means? The Righteous Knights have protected them for thousands of years.
The fall of Tyr was largely because during the time of the Magicplague, the tragic downfall of the Righteous Knights in Neverwinter forced that God of Justice to risk damage to his Divine Soul, break through the World Membrane, and descend to save his loyal knights.
It was the Silver Shield Knights and their families who died in Neverwinter.
In the end, Tyr only took back a portion of the souls, and the rest preferred to fall into the Bottomless Abyss rather than forgive Neverwinter.
