I have to check @
MetaVoid's sheet once more, but I think he dropped some trait for the falchion skill... Even so, the bonus would be a lot more than needed, with a DC of hit dice plus WIS bonus plus 10 per enemy. With Shay getting a 15 and everyone else scoring well above 10 it wouldn't take much to send them away.
As for the violent intent, I figured this would be the apex of diplomacy for a street gang. I figured they'd try to intimidate and stall until they had the upper hand. You have resources that they don't, and your spells are far from exhausted (even though they didn't know that, they might as well presume so, since Hagadark's potions and mutagen gave at least three useful effects out). I tend to think what the characters I placed there would do, and then I use the rules to accommodate that.
Playing with you guys has made me realize some interesting stuff for DMing. For example, I placed you out in the open as a response to your more direct posts. I realized sometimes I want to get too many details out, and they somehow break game flow. So I'm trying to be more straightforward with transitions, without taking choice and flavor away. And I'm also re-thinking some of the choices I originally made for the campaign as I first wrote it, in order to flash out different mechanisms from the game.
EDIT: and yeah, [MENTION=24380]Neurotic[/MENTION], you were right! [MENTION=87106]MetaVoid[/MENTION] traded in the intimidation trait for the shaman apprentice! Still got a load of points for rolling, so...

Thanks for the heads-up!