Don't take things out or perspective.
This doesn't make RP fighting a bannable offense.
This doesn't make the server a PVP factions server.
This doesn't mean you'll literally be pvp'ed on sight.
This does however mean that powergaming will be much more refined. It's been a loose term that's been thrown around for a while, albeit with more strict parameters-- powergaming will be more defined and won't really just be people complaining about losing.
Please go on about your days, this isn't the end of the world. As stated by the OP-- if it doesn't work, we can just go back. Simply give the effort to make it work.
And in all honesty adding knockout defeats the purpose.