Little blue it's always worth lynching in the early game! Otherwise we gain no information.
Are you suggesting the witches just have a free night kill? We would be in exactly the same position tomorrow.
Out of interest there is a funny situation when no lynching (and no night kills) is best. Right near the end when a mislynch would cause a loss.
If there are 4 remaining players with one wolf and they mislynch its a draw or the wolf wins. After the night there are two players and then, depending on the rules, a no lynch (meaning wolves will win) or multi lynch (leading to a draw).
If you choose to no lynch and allow the wolf a free night kill you have a 1 in 3 chance the next day instead of a 1 in 4 chance of lynching a wolf.
Unfortunately the wolves no this and may choose not to night kill.
http://wiki.mafiascum.net/index.php?title=Happily_Ever_After,_Revisited.