My two Tria.
In my opinion, I find roleplay fun and exciting, but when myself and a few guildies are off on an old Ulbie hunt together, we tend to fall OOC in our banter and jokes, it's a natural thing.
For me, my personal policy is when I'm in the towns/cities, or talking to a person who I either don't know well or I know prefers rp 24/7, I rp.
When I'm with a bunch of buddies doing some grind, because you sometimes have to do that to have your big blue Kran club-wielding mercenary at an appropriate level of Mace&Hammer for his character, I tend to be a bit OOC, also in the guild-chat, or when I'm having a /tell conversation with someone miles away.
That's my personal usage of RP.
I think RP as a term should not be something where people feel to be better at it they must join a covenant or feel policed over it. Everyone has their own style. It's like telling Nicholas Cage to act like Matt LeBlanc. Or vice versa.
I also (under the subject of decent rp) must ask WHY DO RPERS MEET IN THE TAVERN/PLAZA FOR SWORDFIGHTS??!!
I have seen it so many times, and if Hydlaa were a real city, it would rate as crime flooded compared to a normal city. How hard is it to say "Oh, Calak, you are speaking evil of me for the last time! To the gates you fool! We shall take the fight there!"
The GMs aren't containing the situation, and I don't blame them, I wouldn't want to be dropping in the tavern just to make sure there are no fights (unless my mercenary was hired by the Octarch to do so in RP, something I have considered).
I think that to ensure good RP, Yliakum's laws need relaxing a little, as the government does not have as much power as it tries to use to enforce. It's obvious people don't want to fight in the middle of nowhere, they want to have an alley brawl or barfight, or a riot in the plaza... would be cool if the GMs held an 'event' where Hydlaa's governing body (The Vigesimi's court) actually relaxed the rules a bit for some warring guilds and had realistic policies.
Before anyone says "That opens it to abuse and bad play!!" - which is what the Rp Covenant is trying to prevent, remember you have several ways of reporting bad play and abuse...
/end ranting ... getting
My point overall is why have rules, policies, laws, covenants when there are so many (who claim to live by those rules policies laws and covenants) that break them.
Rp stands for Role-Play, not Rule-Policy.