Skoll Shorties

There's a heavy difference between IC and OOC in this situation. Of course the majority of the Horde or Alliance would hate the San'layn but that doesn't mean they can't be interacted with or exist. My number rule for RP is always IC = IC, OOC = OOC.

While true, I have definitely met people RPing hostile races in cities, etc. specifically because they knew it would lead to tension. Players cannot actually kill other, hostile RP characters, and some trolls thrive on the passive-aggressive situations that that creates.

That said, I think intent matters a lot in RP. Is the Warlock keeping a demon around because they think they look cool and they wrote a little story about them, or are they just here to provoke a passive-aggressive scuffle? Different people will come to different assumptions.