Rayn Night: Let's see if I can explain this. Ki is really just a philosophy, and a way of training. High-level fighters in this setting are unquestionably superhuman, and it doesn't really matter whether you're Inigo Montoya or Kwai Chang Caine - once you reach the upper tiers of martial ability in this setting, either one could ram their naked fist through the skull of a regular human. Ki-users just evoke a more eastern style, with tai chi swords and nunchucks and meditation and acrobatics and what not; a fencer could use a comb or a toothpick about as well as a kung fu type could use his fists. A yoga master might be able to slow his heartbeat and hold his breath for three hours, but a ranger could do that too, if that's the type of character you're playing.
Once you surpass the limits of ordinary humans in this setting, all styles are basically equal - the difference exists so people can use any character archetype they prefer. So yes, basically what Acrolith is saying.
As for your suggested introduction, I don't actually get it. Keeping the king sane? What's that supposed to mean?
Acrolith: Looks pretty good, and has evaded the greatest concerns I had for applications to this game in general. It's actually nice to see someone not being afraid to take charge of some setting details. Just a few things:
The archipelago is pretty untamed, and there are monsters everywhere, not to mention non-human but still sentient races. Non-human combatants are very common. Fighting them unarmed, though, I'll grant you that's a different matter.
Finally, though I may not really be one to talk, your writing gets a little flowery now and again.