This is a very under-appreciated film, I like it a lot ...

Agreed, Josh. Hwood has a long tradition of locking two disparate character types together to engender transformation, and Butch sees something in the boy that causes him (Butch) to become a surrogate father-figure. Those choices eventually lead to his demise (physically), but spiritually there's a sense that in the end, Butch managed to save his 'soul.'