What confused me was what tyrant allows a refugee camp in his courtyard? Why would a refugee camp decide to settle in the courtyard (peacefully) of the one responsible?
Really? That confused you.
Tyrants need people to lord over. You can't pay an army when your whole kingdom is full of dead people. This is basically how a drug-dealer would protect his clients but will be happy to exploit them as much as he can until they're dead. His clients are no use to him dead. Same goes for tyrant and his subjects.
To the OP. You don't need a trained army to scare an average person. Give any idiot a gun (or sword and armor, in those days) and put him in a small gang and you can terrify everybody with the illusion of power. Majority of people will NEVER revolt against even poorly trained militia cause of fear of death.
FFS, you people need to get out more or read about *beep* like Pakistan or Iraq (ISIS) to know how real people react and act in *beep* situations.
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