1) Those people working the streets in Santa Fe pickpocketing work in HUGE groups. You pick a fight with one, you better be ready to take on another dozen of them from all angles :P I would NOT recommend instigating violence in that place.
2) Absolutely, NEVER take your hands out of your pockets in that situation.
3) You can walk those streets at night, but go straight to your destination and don't wander around. You can wander in the daytime.
4) I think I know that fat chick. I was with a friend right at the same spot, and my friend was dumb enough to take a hand out his pocket to push the girl away, lost his cellular hahahahahahaah
