Actually, this is quite a nice solution.
I find this to be a fine example of the GM looking at a situation, integrating character elements, and using his judgment to explore alternate possibilities the system offers.
Were I to handle such a situation, I would remind players of their multitude of options, which is essentially anything you, as a person, can do or think of, except with your character's background.
I don't know if I could put it into words, much less succinctly, in any other form than: See how things develop and call it as you see it.
I really agree with the Two Weapons view. If you have a hand open, you have a fist. If you have a leg unencumbered, you have a kick. Fight with your body, and get dirty about it. No penalties, cuz... it's your body.
Very nice.