I agree that the taunting was out of synch with what was actually happening from time to time. This made it funny, though.
One problem was the common "I've fought mudcrabs fiercer than you!" taunt. If it was said in an area where there were obviously no mudcrabs (not even any water, actually) it was very silly.
Same thing with the mudcrab line in towns. It made no sense for people to talk about spotting mudcrabs by the water when there is no water anywhere near the city (such as Chorrol, for example).