Clever of Willow to notice the special meaning of Spike's title and wanting answers.
So Kar-Hool didn't tell everything because he thought is was right. Was Joy pouting because of that? When she sat with Dawn she was better.
Loved Kar-Hool story, the history he told. And (you're) Kar-Hool is right about that: a true Champion doesn't fight because seeking of a reward, A Champion is ready to sacrifice their life for the purpose, they do not seek a reward.
Long explanation but good :) Now to the rest, maybe the others understand better then.

Author's Response: Joy doesn't tell lies. She was pouting because the others thought she had told Kar-Hool to lie to them, that they didn't trust her. :(