I think you've pretty much worked out my point, but that paragraph
does miss it. Yes, the rules say that the character has lost and that
is that. But given the nature of the contest the loss is
psychological rather than reflecting physical incapacity. The
character has the physical capabilities to do exactly what I said -
but not the will to do so.
So yes, the contest can override "free will", and prevent characters
from taking actions that they are physically entirely capable of.
-- -- "The T'ang emperors were strong believers in the pills of immortality. More emperors died of poisoning from ingesting minerals in the T'ang than in any other dynasty" - Eva Wong _The Shambhala Guide to Taoism_ Paul K.
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