No, DHK's should be given for ONLY killing civilians, what you described is NOT blizzlike at all.
Stop with this whining about "THIS SHIT IS NOT BLIZZLIKE!!1!"
This server is supposed to be better than blizzlike vanilla, with LOS trees and 10g respecs for example. I do agree you shouldn't get DHK for killing Alexia Ironknife, but stop using "blizzlike" as argument.
World objects having LoS is a stupid change though there is no debating that. 10g respecs is a good change I agree.