I agree with some previous posts,,,,,, no hostages,(which changes the dynamic), he's certainly not going anywhere, but just a knife?.... no tear gas, flash/bang grenades, bean bag 12g rds?
Seems an armed assault/entry is warranted as a last resort, but unless he had a Ma Duece or a "real" arsenal, it seems lobbing some OC grenades in the house might have led to a non lethal outcome.
Perhaps a long range sniper taser? Effective range 75-100 yds?
I wasn't there, so I don't know any other "things" going on,...but a 12g bean bag vs. a charging knife attack +3 attempts, would have changed his attitude, and perhaps saved his troubled life.