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While the whole show of brutally vetoing the guy was probably wrong, limiting supplies within reason is good.
Guwon did say that the children suffered previously from lack of supplies which may be true. We don't know that much about the town yet, and I'm sort of inclined to believe Guwon because although he's insane, he seems to follow a set of rules with some moral consideration.
He accepts people to the town and extra conditions such as children in exchange for valued skillsets. So in his own way he tries I guess?
I don't think we understand the stances of other townies much yet either but my brain is currently fried from lack of sleep so who knows