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The thing that's influencing me the most is that you're effectively also a shortstack, and if you keep folding the "real" shortstack could overtake you before you know it. He goes all next hand with JT, the BB calls with 8 5 and loses, and all of a sudden you're a favourite to go out next. Say the short stack went out next hand. With you're current stack you'll have very little fold equity when the blinds go to 200/400, especially if you don't steal before you're next session in the blinds. Win this pot and you can make a run at first, which is "where all the money is".

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You almost make it sound like the short stack is a favorite despite the fact that you have twice his stack.