Viola's son died at sea ; that child represents the People of the ideal Libertarian Republic that never was. When Nostromo says that the son would have been like him, the deeper meaning (which Viola does not hear) is that such a People would have reacted to the Republic of laws and property exactly as he has, i.e., with new ideals of the kind Giorgio himself would not understand. "It is well" has a subtle double meaning of, "It is well he never lived, for you to have seen that."