This is the only part of your post I have any issue with. In your water balloons analogy, if I am able to determine that something I don't want any part of is happening (eg it's bunch of kids I know play rougher than I'd like), I would avoid the area. I may use some form of authority if I thought the situation warranted it (ie tell bounty hunters, round up a posse), but I certainly wouldn't rely on their compliance that I am not part of their game. I will play elsewhere.
Either you quoted the wrong part, or you left out what your issue with this happened to be, or I must confess missing it, so clear this up for me. But I'll counterpoint what you're quoted, by pointing out "if I am able to determine that something I don't want any part of is happening" that this is a part of the issue itself - seeing that someone, perhaps someone you've never seen before is in the area, you don't know what their intentions happen to be, often until it is too late.
Coming back to your response "(eg it's a bunch of kids I know play rougher than I'd like)" - if it happens to be a bunch of new kids you've not met before, you won't know how rough they play until you're playing with them. And at that point, you say "Hey, you are playing rougher than I like. Thanks for the game, but I'm out" (you just 'combat logged' on them), is it right for them to say "No you're not. Once you start the game you can't quit"?
The same holds true here - there is no way to know what that other hollow square's intentions might be - did they just drop in behind you because they happen to be going to the same place or are they planning to interdict you? If they do happen to interdict you, do they explain their intentions - announce they want to rob you, or do they simply open fire on you? Or do they communicate they have no intentions except to test out interdictions and send you on your way? Since there is no such a thing as an "intention detector", and not everyone is going to announce their intentions, what is the "correct" response at this point? And one other very real possibility - what if that other hollow square doesn't happen to speak your language?
I've lost count of how many times I have, in countless other games, I have happened on someone who may want to engage in a duel, or even coop together, who speaks a language I do not, or conversely, I have run into people who I may warn - "This is my territory, leave or prepare to fight" and they do not understand me. From my perspective, I will generally either give them a pass, or illustrate my intentions - a warning shot, a drawn weapon, a defensive position, or a combative emote - anything that communicates my intentions. But that's just me. I try to make a habit of not being a tool.
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