First, I totally agree that Belkar is an id with feet. This leads him to do anything he can get away with that crosses his mind.

I think most people who deny Belkar as being CE is that he doesn't lockstep into the "I will rule the world! Muhahaha!" types. He is most definately an evil, nasty, psychopathic halfling. He's my favorite PC.

Miko irritates me. I've played a paladin or two in my day, and loved playing them, so that's not the problem. It's just her attitude, and you don't lose powers on attitude, no matter how much everyone around you wants it to happen.

Spoiler Thoughts:
The duel will be cut short by an outside event, leaving further, unresolved tension. This event will certainly mean that the situation is far beyond the capacity of the Sapphire Guard to properly punish Belkar.

Quite honestly, if you have read Xykon and Redcloak have been up to, where they are located, what they intend to do with the legions of hobgoblins, and the oft mentioned "evilgasm", and considering this is about the time in a campaign for the obligatory battle, I think Azure City will be under seige soon. I also wouldn't put it out of possibility that Belkar and Miko are the ones to find out first.

Lastly, you can realistically cold-clock someone in perfect health with a 1D6 pool-cue on the first swing, provided it's critical. A 68 pound sheet of lead is going to really hurt.