The point that I though SF was making in the section you excerpted was that in the eyes of the law, an insult is not grounds for a beating.
On a personal level, we all feel it ought to be at times, but the law says you must react in proportion to the damage to you, and rude names do not merit a thumping.
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Overhead, the Albatross hangs motionless upon the air,
And deep beneath the rolling waves,
In labyrinths of Coral Caves,
The Echo of a distant time
Comes willowing across the sand;
And everthing is Green and Submarine
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