I don't think there's one answer that's right for every cat and every incident.
My cat got his tail stepped on, accidentally, and freaked out almost exactly as described in this news story, and he was a total sweetie before and after. I opted to keep him and glad I did. The human in question never got along with him after that, but didn't live with us and didn't press me to get rid of him. Bottom line: he was provoked, he freaked out very badly, then he calmed down and went back to normal and lived out his life without further nasty incidents.
In this case, where you have a cat with a "history of violence" and a baby in the house, I would be much more cautious. I'd try to find him a new home where there were no children, and where the people were fully familiar with the cat's history and willing to assume the risk. And I'd start preparing myself for the possibility that I wouldn't be able to find any such home for him.