Letting the players work it out is preferable, but the major difference was that on live servers people and guilds cared about their reputation to a different degree than they do here.
For example, two guilds on Terris-Thule were barred from entering Ssra for 24hours after a similar incident. The GM's made it clear they weren't going to deal with it, so we were forced to work alongside one another for the benefit of both guilds (we didn't want removed from our primary targets again.)
Things weren't all roses and we still bumped heads, but there was a working relationship that developed. I'm not sure that this is viable on a server with so little raid content while also having so many people ready to raid, but it would be nice.
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