[Dilznoofus]

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Harry had an interest in keeping Pettigrew alive. He could clear Sirius Black's name.

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Just to nitpick, but I think that since Sirius himself wanted Pettigrew dead, it is probably safe to assume that Pettigrew dead or alive, Sirius is now safe.

All they need is the body to confirm their story.

I think the act of letting him go was just about Harry's desire to not make murderers of his dad's friends.

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I think Sirius's desire to avenge James and Lily could easily overcome his wish to be vindicated by the wizarding world. Also, by revealing Pettigrew's dead body, wouldn't Sirius and Lupin be in big trouble for committing a fresh murder, even if it cleared Sirius of the original crime?

Or would they cover it up? Because I would think the incantation that reveals a wand's most recent spells would foil any attempt to pass it off as a killing in self-defense.

Edit: By "letting him go" you meant letting him live, right? Not setting him free, which was never their intent.