The bar owner said I had a right to defend myself, I was expecting him to say no problem. He didn't, I had to leave. (after getting my hat back and finishing my beer).
There is something about a struggle and the aftermath they are worried about. This nation is becoming very lame in that area.
They are concerned that the illegal might return armed, looking for you and shoot up the place. It is not particularly fair, but it is smart to have you leave.