Because he loved the Village. He promised the Third Hokage that if he doesn't bother Sasuke and doesn't tell him the truth then Itachi wouldn't go near the Village.
You are right. Itachi is a pacifist, someone who does not like conflict, etc. He avoids it as much as possible. That is why in a battle he goes straight to a Genjutsu (E.g Tsukuyomi via MS)
Itachi is too badass to even try, but I would like to see him angry and set to kill. Sadly, he will never appear again, not even when Sasuke will get Rinnegan, because he would not revive him