Does the game track anymore if we knock Fezzerk unconcious? It certainly did at first, but while I didn't test it recently I have a hunch it works now more like most RPGs - so he initiates conversation once his HP gets low/is depleted. With how little support non-lethal attack has I wouldn't be surprised if it was removed altogether.
Non-lethal as a reaction would be annoying if it triggered on every downing - having it to disable on and off would be more or less what we have now. Personally, I liked the first itiration when it was just a low damage skill you would use. I am pretty sure it was essencially what pommel strike is now. Why not give just give back sucker-punch to everyone?