“I made it into Wikipedia,” sang Erszebet. “I’ll bet none of my enemies ever made it into Wikipedia.” - Neal Stephenson

You have responsibilities, now, Bob. You must lose this naive understanding of violence! You are embarrassin' me in front of the lads! You can't play by their rules or they'll win unfailingly! You don't engage in courtly play-fightin' with one such as this. You get a great friggin' tree-branch and keep hittin' him with it until he dies.

There’s no way to get from the point in Hemn space where we are now, to one that includes pink nerve-gas-farting dragons, following any plausible action principle. Which is really just a technical term for there being a coherent story joining one moment to the next. If you simply throw action principles out the window, you’re granting the world the freedom to wander anywhere in Hemn space, to any outcome, without constraint. It becomes pretty meaningless. The mind — even the sline mind — knows that there is an action principle that governs how the world evolves from one moment to the next — that restricts our world’s path to points that tell an internally consistent story. So it focuses its worrying on outcomes that are more plausible, such as you leaving.

Most of them don't actually care who wins because they understand it's just about who sits on the throne, they know the Crusaders aren't here to try to actually harm the city itself. All the potential emperors are assholes, and they're all related to each other, it hardly matters which one wins. So the citizens are literally picnicking and placing bets on who wins the day.