Why did he say that one man will fight him, and the outcome will determine which nation serves the other?
Malbim (8, citing Mahari): Some say that this is still the custom in the lands of Edom and Yishmael. When there is a feud between people, and the law is not known, they agree to fight over it, and they say that Hashem should judge between one man and another, for He knows hidden matters. They agree that the victor will do as he pleases, for so Hashem decreed. The same applies when nations' armies oppose each other. Sometimes each chooses one man, and each fights on behalf of his entire nation. 1
Malbim (citing Mahari): David and Galyus was not like this. (a) The custom is only when they have a doubt [about a claim]. Here, there was no doubt! (b) They fight only after a written, signed agreement about the terms. Here they did not write or swear about the matters, nor stipulate the servitude of the defeated party. (c) The two fighters have weapons exactly the same size and weight. Galyus had a heavy helmet, armor and spear, and David had five stones, a slingshot, sticks and a shepherd's Kelim! (d) They have judges and officers to ensure that the fighters fulfill the conditions. Here they did not. David killed Galyus, and Pelishtim did not serve Yisrael! When their Gibor died, they merely fled. Galyus's words were mere verbal abuse. Malbim - Galyus suggested that they fight according to this custom and make the stipulations. They had a claim - Yisrael were serving them, and appointed their own king. Pelishtim wanted them to serve them like before. He said, "you are servants of Sha'ul" - you do not want to serve us any more! I am the Pelishti - they chose me to fight against the man of your choice!
Why did he say ,if I win, you will be our slaves, and serve us? The other way, he said only if you defeat me, we are your slaves!
Malbim: You are slaves in any case - if I win, the only change is that you will serve us in place of Sha'ul! We are free - if you win, we will become your slaves.
Did Yisrael accept his terms?
Malbim: No. This did not show fear. Sometimes a mishap, illness or accident occurs to one fighter - should the entire nation be permanent slaves due to this 1 ?! Also refer to 17:10:1:2.
Malbim (refer to 17:9:1:1) said that the custom is based on Hashgachah, that Hashem decrees that the proper party win. If so, this is not a concern! Perhaps he explains why Yisrael reject this custom. Perhaps asking Hashgachah to teach us which nation is correct based on a fight between two men is Nichush! Refer to 14:9:3:2. (PF)