You were lucky to have received the traffic information, and it is 100% up to you to decide to act on it or not, and equally anything you do is entirely up to you. As you say, any avoiding action you decide on might well induce more conflicting traffic, but that's the whole point of class G, it's all up to you.
Mildly muddled 'advice' issued at my unit...(pardon me for paraphrasing, I don't have it to hand, but) for basic service, DO pass traffic if you believe it constitutes a definite risk of collision and you see it, but DO NOT routinely provide a higher service, i.e. traffic, than that notified as this may confuse pilots. For traffic service pass traffic on pertinent traffic only (well obviously??).