Rygart was an extreme pacifist. That is what Zess, Sigyn and Hodr like about him. He takes a beating without fighting back.
Rygart didn't shrug Dan's death off. He felt guilty and responsible, which is why he started talking nonsense in front of the guy's grave when the general confronted him. It's not an impressive reaction, but perfectly understandable. In the end, the reason he decided to remain was probably to save his friends and take responsibility for Dan's death. I would have been disgusted at him if he kept walking, but he manned up and turned around, so I'm okay with it.