OK, couple of points
1. "Neighborhoods", call em what you want, I just had a vision of urban street fighting in my head

Call them whatever!
2. Sides don't have to be exactly even like 5 on 7 would work, but not 2 on 7 if it was a "brawl " event, so perhaps say a min of 4 and max of 8? Again, just numbers. But you get my meaning.
3. I like the idea of alternating choice of target & pulling event from a bag. Hmmm, perhaps the event could decide who is the attacker & who defends the "neighborhood" and then a battle to decide. I want to keep a decent bit of
clompin involved.
4. As far as equipment, I say anything goes. That's why the Gods made insurance. No looting.
5. Should we make up 2 guilds for this event? I have some chars I can use as guild holders. Thoughts?