Im certainly no expert but if the guy all in is offering you a third of ur current stack whether its real money or tourney play surely you want to be taking that.
If u put all chips in now, yeah youll scare everybody else away but surely there are more potential dangers in letting any other hand that you will dominate under normal circumstances see a flop. Your chips will go in on the flop regardless but if someone else does call with a lower pp surely the chances of loosing to any other pp increase after the flop. Afterall you can almsot definatly increase your stack by a third or you can give a hand that you dominate like QQ or JJ 2 outs to beat your hand? Its not a lot but its two more than none if you fold.
I certainly wudnt advise caution but if uve got the nuts win with them, dont give some1 else the chance to beat them surely?