Well. I had given up on this thread after a few pages back as I found that much of the discussion here didn't deserve a reply, but now that Zan came up and already mentioned some of the points, I'll reply. Take in mind I only read about 5 of the 6 pages this thread is made of currently.
For those who seem to be pro-fighting in Hydlaa and use a "there's only x guards!" argument, you seem to lack two things already mentioned by Draklar and Zan: and those are 1) imagination, which is required in a roleplaying game where the system is flawed and unfinished and 2) common sense.
If you can't see past the "fact" that there's only about 10 guards in all Hydlaa, you're just not roleplaying PlaneShift. You're roleplaying some other thing inside it, but not PlaneShift. The only thing you're doing to PlaneShift at that moment is you're playing it, not roleplaying it. That which you do could be defined as the reverse of godmodding, in which you simply refuse to accept anything that, even if supported by abstract concepts implemented in-game, isn't implemented in a way you can touch and feel.
You know what? From a concrete point of view PlaneShift is a mess. A simple question, why are doors to other Dsars closed in Ojaveda? Just because that's how the game state is? No. These things have roleplayed reasons and that's what it's all about. If you can explain the closing of the Dsars, then you are roleplaying. Because truth is there's no "plague" (or whatever IC reason in given for it), we're just roleplaying to fill in the holes of the current state of the game, if the way we fit that is with npc-given information, or even off-game received information, or just with the use of common sense, just depends on the situation.
In this situation, just a little bit of common sense would help. Think, you're doing a war inside the capital of all Yliakum. All Yliakum. There's no wonder we extreme this position: it's a whole lot of area. And from a strategical point of view, who the hell would fight in a place where they'd fight both their enemy and the guard? Yeah, you'd think about how many guards there'd be and even if they were a little amount, why the hell would you do it there? Because you feel like it and you don't care if just five more of your warriors die to the guards, what you really want is to fight your enemy there and then? Geesh.
Finally, I really laughed with the "Omg, a GM killed me in a terrible terrible way for me fighting there". Guess what the GM was telling you? No fighting in the Plaaza. And hey, he did it in a roleplay-like fashion, didn't he? It was Laanx that said it, that's an in-game thing. So, wither, for example, a realistic "IC", by your definition, reason for you not to fight on the Hydlaa Plaaza is because it is a sacred place for Laanx and he'll send you to the DR if you do.
Honestly, it's just barbaric to have people fight on the Plaaza. Even duels there are. If that's how your character is, good for you. Do it as you wish, even though it's quite normal you'll find people point the finger at you, you're roleplaying a part of the game that is flawed and so they'll pull to their side and you'll pull to yours. But I think it'd make more sense if you just would leave the plaaza. It isn't that hard to have battles somewhere else and you won't upset everyone who're just enjoying the plaaza by making it look they live in a chaotic society with no rules and no capacity of rule enforcement what-so-ever.