I believe 'The Chicago Way' is about something like gang violence and showing how tough you are while the quote I posted is rooted in a lot of different factors around averages and safety and other things.I believe Sean Connery called it, 'The Chicago Way'.
The escalation to firearm when faced with a knife is a logical one; in fact in a distance of less than....I think its like thirty feet....the knife is still very dangerous because an average person can cover that distance in the time it typically takes someone to draw, aim and fire a weapon. On the other hand answering bluff sailor's talk with mace seems needlessly like escalatio.