Skyrim Sidelines- The Forsworn Conspiracy: Wrapping Things Up
If you are escaping with Madanach and the Forsworn, then it is now too late to turn on Madanach and change your chosen path- the lot of them will dogpile Thonar when he shouts about the murder of his wife and kill him, then reanimate him so they can go on a rampage, killing much of Markarth’s populace (including the blacksmith, most of the guards, and a random assortment of the killable civilians). You will immediately cease to be welcome anywhere in the Reach that guards are present and alive, and many places where they aren’t, basically disabling you from doing any further business in the area. Feel free to rampage around Markarth for a bit, then head out of the city with the Forsworn. You can follow them to the one new place in the Reach where you are welcome, Druadach Redoubt. For all that Madanach is the King in Rags, you are only welcome at this particular Forsworn camp- the others will all attack you on sight as normal. Your benefit? Getting to loot the treasure chest and farm in Druadach whenever you like (assuming it’s respawned since last time) and talk to all the Forsworn there. Unfortunately, they don’t really have anything at all to say. This also leaves you pretty much permanently persona non grata in the villages and city of The Reach, whose guards will attack you on sight for the carnage you wrought alongside the Forsworn (even if you didn't actually do anything) on your way out. The vendors will still sell to you, mind, but you'll have to fight your way past any guards and some of the NPCs on hand.
If, on the other hand, you’ve killed Madanach, then Thonar will tell you that he’s heard Madanach is dead. As thanks for slaying the King in Rags, he’s returning to you everything you had on you that wasn’t already a stolen item when the city guards captured you, and he’s also had you pardoned for absolutely everything that you’ve done in the Reach since you were falsely accused- this includes any penalties you accrued or would have accrued for killing Markarth guards in plain sight. Your response can be incredulous or thankful, but either way he will also give you the Silver-Blood Ring, a plain silver ring with an enchantment that makes the wearer better at improving items in a smithy by a whopping 15%. Not a bad reward at all and one that can stay useful for a very long time.
Either way, the questline is ended, and things have been resolved. Whether you’ve slain the King in Rags or freed him, things will never quite be the same in the Reach.