It's not a matter of pleasing everyone for me, it's more a matter of I'm an impartial arbiter of the rules. What they decide to do within those rules is entirely up to them; and while I'll almost certainly have a story in mind I'm by no means married to it, nor do I have a schedule by when it is to be completed. There's always more sessions, thus no skin off anyone's nose if this one gets spent on CvC infighting.
I do have a problem with PvP (as in, player vs player out of character).
I do not have a problem with CvC (character vs character), and I see CvC and PvP as two completely separate things.
It does say up front in my game intro that in character, other than violent SA pretty much anything goes. And, where applicable, in-setting consequences may follow. What long-term experience has shown me is that while every now and then (especially when just starting out at low levels) a round of infighting will arise, once they get it out of their systems the game carries on in likely not too dissimilar a fashion to your table.