We can't beat people up anymore?

I tried it in both the New Camp and the Old camp. I distincly remember literally beating up every merc and bandit in the new camp before besides gorn (because he is a pal) water mages and the leaders.

But now I just aggro everyone around me when I try attacking. I can still fight when it's a quest npc that attacks me first so I guess self defense is ok?

Is this an intended change or am I missing something?