Murray Rothbard does a fine job of explaining it, so I'll let him:
"No one may threaten or commit violence ('aggress') against another man's person or property. Violence may be employed only against the man who commits such violence; that is, only defensively against the aggressive violence of another. In short, no violence may be employed against a nonaggressor. Here is the fundamental rule from which can be deduced the entire corpus of libertarian theory."
If that ain't consistent, I don't know what is.
Absolutely ridiculous. There is a large enough percentage of humans who will gravitate towards those who seem to be gathering power.
Tell me, in your "fantasy-world", why do you think that everyone will abide by that law?