I haven't gone through the whole thread of Midgard 1 but it does seem that Sigurd lets some hints out in Holmgang writeups. So, there is a chance that fighting a Jotun will help even if the townie loses. Enough information might leak out to throw a spotlight on the Jotun and then get him lynched. Now, does the possible reward outweigh the risk? It doesn't seem so. Lynching is much more of a sure thing if we have the right target. Where Holmgang has the chance that you will lose, no matter how powerful you are.
And I think Jotun can fight in Holmgang and then kill the same night. I'll need to read more of the old thread to be sure though. There is a lot to go through... (54 pages!)
*edit*
Those who survived Holmgang couldn't fight in the next Holmgang. But I don't know if it prevented them from doing night actions. I'll keep reading...
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