As Elayne noted, there has been exchange between Cairhien and Andor for generations. They're not the same people by any means, but they are used to each other. Their fate is FAR FAR FAR from "worse than death". They are, effectively, having their debt relieved, being given an entirely new chance when they legally could have their heads lopped off with lands removed from their family name forever. Now, at least, they still have their heads, their nobility and SOME lands, even if they are not their original lands.


And in a time when Debt truly is a BAD THING (unlike now, when it's the most fashionable thing) this is almost an injustice to punish them this lightly.