What do I think? Good thing you woke up.He was standing behind my dad holding a large fixed blade hunting knife. I pulled a pocket knife out myself and tried to talk down the BG who took a swing at me with the hunting knife. Then I woke up..
Sue: "He's got a knife."
Mick: "That's not a knife." Pulling out a 12" Bowie ... "THAT's a knife."
Seriously, though, it seems to me that a lone attacker who is busily attempting to "hold a hostage" and take you out at the same time has got a lot on his plate. He's highly likely to make a mistake. Uncertain what you mean by there was "no clean shot" available.
In an actual situation, it's likely that: (a) the attacker has the person held closely, hence there is a strong chance of striking the GG in the case of firing shots at the BG; or (b) shots missing the attacker will head off into the apartment complex, possibly striking someone. Still, I think it is very likely that a BG who is attempting to control both you and the "hostage" will fail at one or the other, soon enough. At that moment, he's ripe to be taken out. If he's skilled with the knife, then someone's almost certainly going to be cut, perhaps badly. I don't like the odds of avoiding all injury, but taking the BG out via firearm seems the appropriate course of action. How to help ensure the GG doesn't get harmed? I would hope that we had done some planning and scenarios together, in that the GG could then be expected to react in a certain way.
In the end, here's the thing: isn't this sort of situation exactly what we train for, as students of firearms an self-defense situations? Seems to me we've got a reasonable chance at separating the BG from the GG, particularly if the GG is "with the program" and knows what's about to go down. Which isn't to say folks won't get hurt, but (IMO) competently attempting to eject the BG is far better than to meekly allow everyone to be killed while doing nothing.