I don't think I would have destroyed it either, and I'm not really
sure I buy Angel destroying it... The desire to keep a ring like that would have been tempting, and although his reasons sounded good, I feel he would have been more conflicted than he appeared to be.
I think in the Buffyverse it would have made more sense for Buffy to have destroyed it in ""Harsh light of day". I understand that it gave the Angel team a great store (and really, ANY excuse to feature Spike and Angel together gets a big thumbs up from me
) but as the Slayer she should have known what Angel knew: In the wrong hands, it would eventually mean the end of the world. Imagine if the Master had found the ring?