I think it was the right thing to do. I mean, not only was it important to the plot (as WA indicated earlier), but as many have said, it was a muzzle. The trigger certainly complicated things, but I don't think the chip was *ever* right. In fact, a good portion of Season 4 was spent setting up the idea that the methods of the Initiative were wrong. The chip took away Spike's ability to feed himself. Once he adapted and established an alternative diet, the chip took away Spike's ability to adequately defend himself from attack (see the end of Entropy for an example). later, in season 7, the chip started to malfunction and cause him extreme pain and suffering (not to mention probable brain damage). The chip turned him into a puppet every bit as much as the trigger did. The chip was a faulty, foreign piece of human technology shoved into an unwilling creature's brain. There is nothing right about the chip. The only right thing to do was to remove it -- even if Spike had been soulless at the time and had had to have been put down, it would have been better to allow him to go out fighting and in his natural, whole state than as a helpless puppet to long dead scientists with a thing for playing God.