Nah, not at all! Me getting everyone's Level 3's at that point is unnecessary but I like to be nice and badass early on!
Sorry man, I was off work yesterday and didn't log on here!
Everyone seems surprised whenever I mention this! Barret has to have his original weapon (Gatling Gun), he has to have no materia or accessory equipped and you can't use any command in battle. As long as your HP is high enough to survive (especially his final Molotov Cocktail!) he realises Barret is not willing to fight back. He still gives Barret the necklace (so you can get back to Gold Saucer) then exits bottom of the screen. He even shows up in scene towards the end of the game with Marlene!