I was pickpocketing the drunk sleeping goblins (and bugbear) on the high passage, but got caught, and then all the goblins oautside went to the attack. Even though I was already Lev. 4 at that time, I thought it would be hopeless against 20 enemies, including the ogre at the gate.
All of them sleeping goblins and 2 bugbears can easily be dispatched by crushing them individually while they sleep. Sleep = 100% hit chance, and in most cases, dead. You can 'pickpocket' them after they dead. ;-)