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Alicorn comments on Open Thread: January 2010 - Less Wrong
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The Na'vi didn't defect. The Na'vi refused to play. The human faction wouldn't accept any outcome that didn't end with them getting the unobtainium, and the Na'vi not playing was such an outcome, so the humans forced a game and, when the Na'vi still weren't cooperative, defected big-time. Since the game was spread out in time, this permitted retaliatory defection - which isn't part of the original non-iterated PD, nor is refusing to play.
And since the Na'vi choosing to fight turns out to make human non-cooperation give a far worse outcome to them than cooperation it just isn't a Prisoner's Dilemma at all. It's a "The Na'vi are will F@#$ you up if you mess with them" game.