First, hypothetical questions are always dangerous. Asking them isn't dangerous, but answering them is.
We tell people in a similar situation that, when in doubt, it's best to recuse yourself. I certainly wouldn't have said what you provided as a second option, that's for sure. We often give advice to public office holders. We tell them that, if they have any doubts, they probably have a good reason to recuse themselves. It's always safer to do that.
Of course, I don't know what I would have done if Mr. Trudeau had checked with me, based on the hypothetical situation described. However, I probably would have taken the usual approach.
You have nothing to gain by getting involved in a decision where there may be some doubt about the objectivity of the decision. The decision can always be made by someone else.