I see absolutely no problem at all with puppeteering in combat, or sometimes out of battle, if it leads up to combat. Plus, this has happened in numerous if not all RPG's in the past, in order for combat not to get stale and boring. I know for a fact that some of our oldest and most experienced members have done it, and it was in a good way to bring abit of competition into their own post. Now back when i was a noob, i followed examples, or tried to, and this is one of the things I, and im sure many others, picked up on.
Now i know there are limited situations, such as godmodding, but puppeteering is essential in combat for an RPG. Now if they did something to where (like Shadow said) you obviously could get out of it but they said you couldnt, then it would fall into the category as Godmodding, or atleast in my opinion. And Shadow, im not sure what you were trying to say with this- "The small ones are fine but "He took his wrist blades and slamed them in her shoulder" when she can move around, that is modding" sounds abit like you cant be hit, as that is not really a kill post, sounds small to me. just curious.
Now how exciting would a fight be if one person were fighting and since they were told not to puppeteer, the opponent in their post just sits there like a rock and does absolutely nothing? I would much rather make my opponent fight back towards me than being restricted and having no competition until that person posts back and then I cant do anything. I would rather someone control my character in a fight because even if they dont know what i would do in a situation, something is better than nothing.
Now about out of combat, some is fine, but not all. I remember in Leap of Faith i believe i was following Kidd because i wanted to fight him, so i controlled his character abit to where it would lead up to the fight, but still fit in with what he was doing before.
Now something like this i would think is unacceptable:
P1's post- "P2 defied his orders and ran all the way across the planet looking for a fight, and suddenly found P1"
Now that makes no sense at all and totally messes with what P2 would be trying to do.
Now Malus, when you say "DO NOT PUPPETEER! EVER" it goes against what you quoted, when Orthus or whoever said "but let them react to your attack." and reacting normally involves fighting back, which you normally add into your post. now if you attack someone and they dont want to fight you they can contact you through the discussion topic or email and ask you to change their post or just simply post something happened to their character that made them unable to fight back, whether it be rockslide that blocked them off or whatever.
Now if there is something I am missing about what you are trying to say then please say so, so that I'll better undestand your side of it.
(sorry for the long post, that is basically all my opinion about it)