I've played and enjoyed some games that were pure scripting exercises. Having a decently strong computer science / AI background, I generally do well in them. It's just not what I personally find enjoyable in a MUD.
There's a lot you can do as a game designer to limit the strategy of ganging up on one guy in a group vs. group fight. For example, maybe the more people are trying to focus on one opponent, the more they get in each other's way and prevent attacks, making it a matter of diminishing returns.
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