Kill Larria or not?
If you don’t mind any spoilers: She will die either way
If you kill her you lose 250 rep with coven witches, not worth it, she drops crap and is hard as hell.
She can drop a really good MI fire dagger how is that crap? Tho like others pretty sure the prefixes are bugged on MI weapons/offhands. But even still the Dagger can be pretty good.
It was just very annoying to find out that both options led to the same ending, except that if you kill her she can respawn for you to farm the MI dagger. Terrible design.
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Considering how easy it is to build rep with the Coven, that’s definitely not an issue.
Killing Larria is mostly a moral choice for the player and also for roleplay value… you do it, or you don’t.
No, it isn’t.
I did not want to kill her since yeah, she did nothing wrong. My Blademaster is mostly siding with Barrowholm 'cause while they are shady and probably a cannibal cult yeah, they actually oppose the cannibals and wendigos in Ugdenbog, and I want to get to the bottom of it just what is behind it. I think it was a nice touch to see that Scarv got her in the end… it genuinely surprised me and also made me worried that he saw through my lie.
Than again, anything Scarv says creeps me out. He is the leader of a (probably) cannibal cult and says stuff about bloodfeast and Ravager, but he has the jovial voice of your kindly old neighbour or the grocer you buy food from every day. 
All that just makes him more creepy.
I am still on Respected with Barrowholm and just got the quest to hunt down three wendigo bosses. Will he open the cellar on Honored?
Burn the witch! Kill her, then loot =)
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but she doesn’t really drop anything
Not really no
I’ve just found her after I’ve already decided to not help Barrowholm. Would have been awesome if she would had offered you a different quest line if you decided not to help Barrowholm. Kind of like with Kymon’s Chosen and the Order of Death’s Vigil.
But there is still hope that they may add some additional stuff to it.
This is the best weapon I know of for a fire based FoI build: http://www.grimtools.com/db/items/8483
If you let her go you get a Wendigo Spirit which you can use in the Ancient Ruins quest if you don’t have one yet (one of the Coven Qs grants one too though).
She will be gone forever after that so you can’t fight her again.
If you kill her you lose some Coven rep but she will respawn in new game instances despite being dead both gameplay and lore-wise.
Her MI daggers are some of the best elemental weapon bases in the game so saying she doesn’t drop anything is just wrong.
Janaxia drops these as well so you’re not outta luck if you let her go, but having 2 farm locations in one game instance is much more convenient.
In short, if you want to farm the daggers = kill her.
If you don’t care about the daggers = let her go for the Wendigo Spirit.
I’d say unless you want to let her go for roleplay reasons, kill her. You also gain faction gear and augments from Borrowholm if you kill her. Until she dies, the faction vendor will not show up.
You can get Wendigo spirits from the armorer outside the gates of Malmouth. (there is a conversion cost, but it’s super easy to do).
I think that faction vendor shows up when you get Honored, not sure.
It would be weird if you lost an entire faction vendor even though you fooled them. 
Nope, I’ve been honored a few times, and the vendor will not show until you kill Larria. Immediately after, the vendor is there. I was really confused as to why the vendor wouldn’t show on one of my characters, which I decided not to kill her on Ultimate. The vendor was there on Elite, but even after doing all the quests to get the fetish, the vendor wasn’t there. I eventually decided to kill her, and the moment I returned, the vendor did too. The same behavior has occurred with all my future characters too. I tried logging out and back as well, but nothing changes until Larria is dead.
Edit:
If there is a fooling them dialog option, I haven’t done that to know what happens.
See? If only you’d all listened to that nice Egdenor fellow and murdered her from the off, she’d have happily been able to live out the rest of her existence as an eternally respawning being. But no, you went against his orders and now she’s dead forever. Well done, guys.
#praiseravager
Im more concerned that we cant kill her bofore taking Egdenor quest. Shady witch in dark cave with weird wards ?
True, though considering the first time my morally decent Pyro bumped into her I was bathed in chaotic hellfire and god knows what else as a result of several pacts with various Eldritch gods, I suppose I’m in no position to judge people based on appearances.
Scorv sounds like John Astin as Gomez Addams, except for the part where Gomez was likeable.
He also sounds like he’s selling used cars. I kept expecting him to tell you he’ll give you the next quest but he just has to check with Ravager first. And when he changed clothes and it wasn’t a Herb Tarlek special suit, I was disappointed. (“Somewhere, there’s a Volkswagon without seat covers.” Immortal line.)
I am still on Respected with Barrowholm and just got the quest to hunt down three wendigo bosses. Will he open the cellar on Honored?
Alas for you, the cellar is the exclusive hunting ground of people who don’t join Barrowholm. Sort of a consolation prize for missing their quest line, like Anasteria’s dungeon at Fort Ikon.
Except here, the uber-boss with the special hats is on the other decision path from the extra dungeon, and there’s a separate Nemesis for siding against them.