You seem to pick the oddest times when to hit and when to fold, I feel. For example, we did not need to aggress those fairies at all, earlier, and yet they got zapped. On the other hand, we need to establish a firm stance here, or Remilia will just think she'll be able to walk all over us in the future.
We started off the encounter with the fairies as friendly and un-hostile as possible, and spent like 15 posts talking to them until they opened fire on us of their own accord, while we were trying to
leave, which is about as un-hostile an action as you can take after all that. And once they'd started shooting, they didn't seem too inclined to listen to anything else we had to say. We did try again afterwards, if you note. I hardly think you can count what we did as 'aggress' them, given how it played out.
And frankly, Remilia feels she has the right to walk over pretty much anyone in her home territory. She's a queen in her own mind. We asked they be treated fairly, and she took offense to the implication that she would even consider not doing it. She feels she's being more than gracious as it is. Making demands of her on top of that, no matter how reasonable they seem to us, are likely not only to be denied, but to offend her for the pretension that we were in a position to make them. And, we'd be denying the value of her word again, which is a big no-no when we're in such a poor bargaining position.
Additionally, I tend to think the dance contest idea would seriously rub her the wrong way. If we're lucky.
For what it's worth, I actually believe Remilia at her word in this instance. She does have a certain reputation she likes to preserve about being gracious and all. I don't think they'll come to harm beyond indentured servitude, which she's certain not to relent on at this point, in either case.