It's an optional encounter. The Koa Toa have always been silly. People sitting around a table saying "how would fish people pronounce ____"

Their god is named Blibdoolpoolp.

Castle Greyhawk was protected by Colonel Sanders.

So far I think Larian has got the tone right -- some silliness without going over the top like the did with DOS. (no bushes and barrels during sneaking or the like)