How to get the guards to stop attacking me, and get them to arrest me

If you complete the quest he may take the daggers depending on your persuasion skill. If your persuasion is high you may be able to keep them, the chance is 47% if your persuasion is 0 though.

I don't really think bounty really matters and paying fines or going to jail is pointless, it wont cause you many problems just to run away or keep killing guards and civilians. My current bounty is at 4 million and the only problems I face are when I try to re-enter a city that I recently killed a bunch of people in like the past hour or so, but the agro in the city fades away.