This is not an easy camp to break. Pacify works normally on some mobs, other mobs will attack if in social range of a mob you cast pacify on. Once the camp is broken it is not that bad if you keep up with the respawns.
The "a hungry goblin" cons aggressive, but it is not aggressive or social. It will not attack if you attack goblins near it, I'm not sure if attacking it will cause other goblins to attack. You can completely ignore these mobs if you like, or you can kill them for extra xp. The hungry goblins will appear for a minute or 2 and then disappear. They just add to the ambience of the area by showing up to eat and then leave. If you do kill them they are on a faster respawn than the other mobs in the area.
Halflings will also wander through the area. They are non-aggressive and I ignored these mobs as well.
"a streamswell elemental" and "a guardian minotaur" will occasionally wander through the camp, they are aggressive. They seem to take the same path as the halflings, but I'm not sure where exactly they come from.
The Worker's Champion is much harder than the other mobs in the area. The champion is a very rare spawn. I have been clearing the area for about 14 hours and the champion has only spawned once. It was in the little room northwest of the main bar.