Question about The Confusion (spoilers)

I'm reading The Baroque Cycle and just finished The Confusion. There is a part at the end of the book that bothers me and I'm not sure I'm interpreting it correctly.

In the scene, Jack is imprisoned after falling for the trap in Qwghlm. I believe he is forced to watch Etienne physically and sexually abuse Eliza as his punishment before being rescued by the King of France.

Jack recounts that it doesn't bother him watching this because he knows she is unhappy and that a worse punishment would be to watch her be happy with Etienne.

Am I remembering and interpreting this scene correctly?