It's a lot cheaper than involving lawyers, and it has the benefit of letting all participants work through their testosterone and adrenaline, so that after the match they can sit down and discuss the matter more amicably.
A proper refereed and organized fight is a pretty deep bonding experience, for guys anyway.
You're more likely to get, and give, a fair deal to someone that you've done something physical with - it's just how the human animal works.
You walk away thinking "This other person is willing to get into a fight with me, and fight fair". And the physicality of it does cause some amount of bonding.
Plus, the adrenaline in your system that builds up when you prepare to get into a negotiation and would otherwise have nowhere to go gets used up the way nature intended, which makes it easier to see things with equanimity afterwards.
That's an excellent starting point for any negotiation (assuming the fight was indeed fair).
We have evolved with physical fights as one of the cornerstones of our interactions with others -- you can repress it, be in denial about it, work against it, or work with it. What should a hacker do?
TLDR:
The point is not "who wins the fight wins the argument".
The point is "let's you and me fight, then afterwards, we can discuss the argument with more equanimity"
We have in recent years marginalized boxing as it gets people killed or seriously injured, causes lasting brain damage even under controlled circumstances, and normalizes violent behavior.
Edit in reply to sibling: HN seems to have some anti-deep-thread mechanism which hides reply links. Maybe you should find someone to punch about that.
The point is not "who wins the fight wins the argument".
The point is "let's you and me fight, then afterwards, we can discuss the argument with more equanimity".
a lot of musicians and movie stars challenge their opponents to fist fights on a regular basis; and sometimes you get a mickey rourke or an uwe boll, brawlers who know what they're doing, or muscled rappers with a shady past and diamond rings on their fingers that aren't for show.
so UMG hires the biggest, meanest colombian war criminals, send them to fist fight college and employ those guys as "sekundanten" (sorry, no idea about the english term here - stand ins for duels).
poor bjorn lynne wouldn't stand a chance.
And I somewhat agree with your sentiment. Today's process in the US is a huge resource wasting machine that serves only one group - lawyers.