True on the first part, but it was pretty clear to me that Ailill did not anticipate Finn suddenly demanding a duel. If anything, the scene partially worked to establish that while advanced in many ways, Elven society is still burdened my some archaic laws or traditions. And of course that Medb was not at all fond of intervening on your behalf.
It does serve to establish their basic characterization (though that doesn't do Medb any favors in my book), but it does beg the question of why Ailill only granted the MC safe passage TO the meeting. Don't tell me a guy who lived in a rules-lawyer-culture for millennia didn't recognize the loophole.
Personally, I think he was reluctant to bind the Alfar authorities in case they wanted to capture the MC themselves, and felt the risk was acceptably low (partially since he underestimated Finnabair's temper, partially because he just didn't care for the MC all that much - at least at that point). Would have been nice if he'd mentioned that to the MC ahead of time, of course, but that's not how business is done among the Alfar. Ailill told the MC the terms, it's up to the MC to spot the glaring issues. This is the sort of risk the MC signed himself up for.
Also regarding Medb, in 100% certain that there were Templars there that would have liked to kill her but only didn't try for two main reasons. One, she had armed guards and is an extremely dangerous combatant herself. And two, the Elves still held the Grandmaster hostage and could retaliate by killing him. The Templars of course have more cause here to try to kill her, but I don't think the fact they didn't is due strictly to honor or something like that.
If you're saying Medb would have found a way to forbid the duel if she thought the MC was a threat to Finnabair, I tend to agree. If you're saying the Templars are even more unscrupulous than the Alfar, I disagree. Sure, they hate the elves as much as the Alfar hate them, but for all their grumbling they stil treated Medb with substantially more respect than she showed them in their own home.
Maybe you can attribute that all purely to the Templars having to play from a weaker position in that situation, but I see no reason to give the Alfar the benefit of the doubt given the attitude they've shown at nearly every turn. Even when resolving their own life debt, the Alfar will demand details be settled to their whims, and they consider it a grave affront should anyone even hint otherwise.
I'm pretty unimpressed by both sides of this impending conflict, but so far I find the Templars marginally less offensive.
