/lit/ - Literature

Do you guys think unarmed (hand-to-hand) combat has a place in high fantasy?
As we know, sword and magic is strongly ingrained in this genre, and for a good reason. How would you feel, however, if the main character of a book found himself in a situation where he had to throw hands with his opponent? I mean a real fight, with high and low kicks, broken noses and missing teeth.
Would it be a nice change? Or would it be inelegant? Rustic? Too down to earth, unmagical?
What would you think if, say, LOTR had a moment like that?

If my city has a made up name, can I give its citizens whichever demonym I think it's best? Or should I follow a linguistic rule?