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The reason Little Kevin was killed, imo, was that he had Randy tell Lex where to be in the park, and Randy had talked to the police. The police knew Little Kevin had info on Lex being killed, so he was a loose end that had to be cut off.
As far as Michael...
Chris: I don’t see the boy snitching.
Marlo: Neither do I. But you ready to bet your future on that?
This is not out of line with the character of Marlo. He had others killed for less.
That's a good point on Lil Kevin. And I agree the killing is not out-of-line for Marlo's character. I also fully admit that I have no knowledge of how street gangs work, but nonetheless, I have my doubts as to how true-to-life that is.
I would think that an operation like that relies so heavily on trust that you have people that you trust or you don't and it's that simple. Like in S1 when Moreland and McNulty get DeAngelo to write that letter to the dead witness' "kids" (Lol). Avon found out about it, but he didn't have DeAngelo executed for it. I also think that in real life when they do order a hit that they probably go after the full crew. Similar to the way you see in the mafia where they try to wipeout an entire family, take out the offending party & anyone that you think would be loyal to him or harbor resentment towards you for eliminating them. But that's just a guess on my part.