Kontradiction
On my retirement tour.
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I disagree. I know outcomes are what we value most, but win or lose, I feel like he made the proper decisions based on the situation.
Indy was the better team, and deserved to be favoured. And Payton knew that. As the underdog, you can't play the game the same way the favourite does, or you'll usually lose. As the underdog, you're forced to take some extra chances to win the game. These decisions increase the odds of losing big, but they also increase your odds of winning the game (a higher variance), and Payton was obviously playing to win.
Payton made several gutsy calls in a row, from the 4th down attempt to calling timeouts late in the first half when Indy might have converted, and then the onside kick. Each of these decisions was made to increase the variance of winning. Had they all backfired, the Saints would have gotten killed. But I'd argue that had he not made them at all, the Saints still would have lost.
The conventional thing would have been to kick the field goal on 4th down. But then you're kicking off to Manning who gets the ball at least at his own 20-yard line and a few time-outs, and the opportunity to build up a huge lead going into halftime. Plus he gets the ball to start the second half, just in time to hammer the final nail in the coffin.
The Colts offense was rolling, and while the Saints offense was picking up steam, it still hadn't scored a single TD and had to settle for FGs. Payton altered the state of the game with his decisions, and whether they worked or not, it was the right choice because it changed the status quo, and the status quo would have meant a Colts victory.
Considering the Saints defense held the Colts at the end of the game I don't think you can say with any certainty that they wouldn't have been able to hold them after the opening kickoff in the second half.