Originally Posted by
Rosenoire
I didn't see him as a threat. I saw him as an annoying nuisance who would not go away. This was the third time I'd faced him; at that point, I'd be like "Okay, I'm over this already *stab*" Instead, the WoL is "Bye! I'll just let you run off toward what looks like the Mol encampment and not stop you. Catch you later!"
As far as Imperial outposts dotting the Steppe, that contradicts what we're told when we first arrive: that there's nothing there the Imperials want badly enough to deal with the violent Xaela who are optimized for living in that environment. The only thing that might be of interest to them would be the House of the Crooked Coin which may or may not be Allagan-related, but at least on the quest that takes you to that location, there's no sign of Imperials. It's a bit puzzling.