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Well, you won't be able to buy anything from him now, and that's a pity, since he sells the best stuff in the game, especially ammo (not to mention the Mantis Boots & Gloves, the Cloaks of Many Colors, etc.).
However, as far as the game itself, no, you're not screwed. The Templars are up on the balcony in the main room, and you can go there to join up. Ferro has nothing to do with becoming a Templar (except annoy you until you do it).
The armory has some decent stuff in it, but nothing really extraordinary.
Still, I'd restore to when Ferro was still alive, just for the merchandise he stocks.
Nightowl2
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