After completing the quest and turning down the offer of additional coin, I'm not rewarded the Cloak of Many Feathers. I was under the impression that cloak was awarded for any outcome except siding with Serel (in which case you get her ring).

Hello Thessaly,

 

This is indeed intended. If you turn down the offer for a better reward, you will not get the cloak.

 

Thank you for your support!