I don't really think it's about people being afraid of getting shot. It's the safety factor. But if you want to run with "your" rules, that's fine too, players who attend your games/events will have a choice whether they accept your rules or not.
TTAC3 have their own rules, for example, they don't have "mercy rules" - and it works for the crowd that goes there. Brian can probably give you more details about their rule set and how it's working out for them.
My ASC UserID is 666. Oh, great...