I never really thought the whole Jabba the Hut sequence through, but I thought it was meant to be ambigious. The movie didn't spell out the whole strategy because it wanted the audience to interpret it themselves. I don't think Luke had respect for Jabba's right, he was going to do whatever necessary to get everything he wanted from him even if he had to kill everybody. That's one thing that I like about the perception they gave the jedi in the OT. They were tough protectors fighting for peace and wouldn't take no bullshit even if they ended up being a little uncivilized. In the PT they were a bunch of niave whimps.