I think Diggory is smarter than Lucius, because he doesn't have Lucius's arrogance about "having raised his son right" to blind him to Draco's true nature. On the other hand, he's almost too Slytherin to understand that Draco might well adopt Gryffindor tactics if they work; he still thinks Draco must be acting from notions of ambition and vanity.
That's exactly why Draco avoided violence, and chose only defensive potions. He didn't want to give Diggory the chance to spin him as a criminal himself.
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I think Diggory is smarter than Lucius, because he doesn't have Lucius's arrogance about "having raised his son right" to blind him to Draco's true nature. On the other hand, he's almost too Slytherin to understand that Draco might well adopt Gryffindor tactics if they work; he still thinks Draco must be acting from notions of ambition and vanity.
That's exactly why Draco avoided violence, and chose only defensive potions. He didn't want to give Diggory the chance to spin him as a criminal himself.