I know about the girl, I just thought she was funny. There are other NPCs that have insulting things to say as well. The thing is that effectively, CHARNAME starts the fight, or at least, doesn't make the effort to end the conversation and kills Amalas -- his friends even have reactions, "You killed Amalas! What am I going to tell my mom?" etc, that lead me to believe that these are just novice brats who don't really know what they're doing. Almalas is not like Corvale (is that his name?) who stands outside the CC with the dwarf, insults you, and automatically attacks you no matter what you say.
The whole Amalas situation makes me think that my massive, 20 year-old spawn-of-Bhaal paladin just slayed a trash-talking 17 year old for the hell of it, with no restriant whatsoever. It's one of the few situations where you actually have the choice whether or not to kill someone because of an insult and I just think it should have some sort of broader consequences other than getting XPs and making Aerie sad.
On a related note, doesn't Mazzy try to fight him? I've never played with her . . . but what's that all about?