The #1 rule is to do what maximizes fun for all
To be honest, having robots that insult people sounds fun! Just be warry if by chance there are children around . . . please, no children!!!
As for your worry about crazy fast robots smashing other bots out the ring . . . You know, I agree with you. I think algorithms would be more fun than faster motors. I saw japanese sumo matches that last .2 seconds cause its more speed than anything else . . . and kits wouldnt stand a chance . . . Does a maximum speed limit rule sound good? 1 ft/sec perhaps?
Lastly, I got us sponsorship already! Ill formally announce the company soon, but basically this is what they are donating:
"Happy to sponsor your event to the tune of a motor driver. We have a dual 5A (10A sustained peaks) driver coming out either this week or next that would make a great sumo product."
Ill write up a nice webpage with rules, etc in hopefully a week or two at most.
Would some time around or after thanksgiving holidays be good for a first meeting?