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If you have to pull your weapon, is it better to try and detain the person or let them go. this is based on the assumption that no shots are fired and the situation is able to be de-escalated.
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M1911, Keltyke, and peetzakilla have nailed it. I'll add that there is also the risk of civil liability.
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Also, are there any laws against an everday citizen holding a person while waiting for authorities to arrive?
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Actually, there are laws that
permit a citizen to do so
under specific circumstances. In all states but one, that involves
citizen's arrest.
Usually, a felony must have been committed or attempted.
And don't assume that deadly force is ever justified.
If you have one perp, how would you hold him alone? What if there were two or more?
If one attempts this without knowing exactly knowing what he or she is doing, there can be hell to pay, as has been pointed out. And the citizen is not indemnified in the same manner as a peace officer.
Shorter answer:
BAD IDEA.