Hmmm. The way it works at the crowded well-known reef here, certainly the biggest locals are not always the best surfers (although all good)- closer to your last two options- there's a crew been surfing there the longest, 30+ years. They sit furthest out for the sets, maybe a few inches bigger boards now, and there's always a few out, so they know each other and they will quickly start barking at a new face if they aren't being respectful or get in the way. It's a pretty clear hierarchy, and not nearly as intense as it used to be when this now-older crew were all in their surfing prime. We used to see punches thrown regularly when I was a grom. Usually the incidents nowadays are more on the inside peak where it's a frothy mess of 2nd-gen-local groms, semi-pros, randos, and kooks who are out of their depth (but paddled out because they drove by and saw better waves than other spots). Mostly just yelling, name-calling, and maybe some water splashing.
If I'm being honest, I'd say I'm on the fringe- I don't know everyone, but enough from growing up nearby and then moving back a few years ago. People know I will go on any wave and not waste it. I am always respectful, certainly know whose waves not to paddle for, and I try pick off waves that swing just wide or inside of the outer peak. But if I do decide to surf at this crowded spot, I know going in that I'm not going to get a lot of them, just hoping to snag a couple good ones. If I want more waves, I go to other lesser-quality spots around.