I say, just don't moderate it. If people want to fight, let them. Just put an 18+ NSFW warning on it or something. Maybe it could be setup so there's a page where you "agree to the terms" between clicking the link and viewing the threads in the section.
It could be locked like the free for all section. Make people enable it if they want to use it. But then be prepared for 9999999 threads on "how do i enable kill section."
If you get rid of it all together, people will be posting these retarded, illiterate stories in the lounge, and no one wants that.