The way I see it, the whole problem would be eliminated if people simply didn't have the rule to begin with.
If people want to duel, stick to duel servers, or find a quiet spot, and do a saber challenge.
No bowing or saber off required.
Now I know, I know, people want to "role play" and stand around in a FFA level with their sabers off and chat while they stand next to some people saber dueling.
Well, either you make a mod that makes you invulnerable while your saber is off that works until you start a saber challenge, or you simply have to put up with people abusing it on occasion.
If you're the host, explain the rules to people, and if they don't obey, warn them, and if they continue kick 'em. That's the job of any decent admin anyway.
But in normal games, I think "sabers off = peace" is a silly rule, and its one I won't follow unless the admin demands I do (and then chances are I'll just find another server anyway). You can still kill people and fight with your saber turned off and its an occasion to use stealth to suprise your opponents (since the saber gives away your position). If I want to duel, a dueling server is a much better idea, and you can watch the duel first hand (using the spectator/chasecam modes).
And I agree, in CTF/CTY, the saber off rule definately is suicidal and anybody who would demand the rule be enforced in this game mode clearly doesn't understand objective based games like this. ; p