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Again, why?
If the environment is available for PvE, there should be no harm in allowing it for PvP, so long as disinterested players are naturally excluded from the proceedings (which you detailed with that opt-in provision). If it harms none of the players not participating, what problem is there in hosting duels/battle royales in Whitegate?
Imagine people dueling in Port Jeuno. Tell me that doesn't add to people's lag and slowdown. That certainly affects disinterested players. And please don't tell me they should leave if it's a problem for them.