IAHGames is hosting another PVP event - [Event] War of Factions 2011. Essentially, the factions (aka clans in Sword 2) occupying certain colonies each week will get bonus rewards, such as 300 Lightning Orbs, 100 Constellation Boxes, 200 Elemental Jewels, etc.
I mentioned before elsewhere that the game is driven towards more and more PVP/PK content, partly because encouraging more direct player competition results in more cash shop usage and hence more profits. This is a business after all, and it is basically how most free-to-play (aka pay-to-win) games make money. This is the reality of the situation.
For more critique of the event, see IAH Event War of Factions = Corporate Welfare. It is basically the same thing everywhere, whichever server or game service provider/distributor.
If you look through the game version updates, you will notice more and more "red" content were being added. The weekly Colony War has always been there, and was revised several times such as during v3.5 and v5.0. First, you see Super Fights (e.g. Secret Temple) being added in v2.4. Then in v2.6, Royal Rumble was added. Soon after, in v2.9, you have Low-Level Super Fights added to the game because the game developers wanted to see blood even among new players. In v3.2, we get Team Arena, in which players on both sides are forced to compete against each other. (Most players however worked around the unnecessary competition by simply paying others to set up a dummy opposition.)
Somewhere along the line, La Tierra d'Amor (another forced PVP map) was also added. There were also content that encourage players to make themselves susceptible to PVP/PK (i.e. being Royalist/Republican), such as El Antiguo Patrimonio (aka Faction Fight), Joaquin Underground Prison raid, and the bonus +1 family level. Then, because fighting among people within the server wasn't enough, you have World-Cross PVP to fight players from other servers as well. In v7.0, you even get the all-out faction war. Enough said.
Have you ever wondered why in the Game Options (Alt-O), there are settings to auto-reject whisper, trade, squad invite, clan invite, friend request, summon, and apprentice request, but there was never any auto-reject duel setting despite the fact that dueling is one of the older functions available in the game?