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The Daily Grind: Is there a place for diplomacy in an MMO?

'Violence is the first refuge of the incompetent', wrote Isaac Asimov, and to a certain extent, that's true. But in an industry that caters to these primal impulses -- and thriving off of them, as well -- is there room for the non-violent path? Certainly, the violent response is more fun than talking it out, at least in an urge overkill kind of way, but surely that's just a matter of implementation.

If we truly want to simulate any sort of real-life experience in our games, the full range of social interactions ought to have a place, including politics. And it's one thing to try to reason with an AI, but if you can create a lasting peace with another human player, you have something to be proud of. But is it necessary, or would diplomacy in a combat-oriented game merely detract from the experience?