To chop or not to chop?

[Phatty_One]

Forgive me if this topic has been wildly presented and may be off topic.

To chop or not to chop? That is the question. I am primarily an online limit player, and do have a large amount of experience in live games.
A situation occurred to me at the Wynn in an 8-16 limit game. I show up fairly late into the night ~1am, kinda drunk, and join into a 4 handed 8-16 game that looks populated by regulars.

A few dozen hands into play, I pick up AQs in the BB. Action is folded to the SB, who asks me if I want to 'chop', I tell her no. She gets mad, starts talking about the rake, eventually calls, and I insta-raise her. She calls me down to the river after a Q flops, and I pick up about $50 from her. At this point, this woman is livid and begins to be verbally abusive towards me.

A few hands go by, she changes seats, and we keep playing until anther player offers me a chop on the BB, which I accept after looking at some rags. The woman loses her mind and begins to shout about how "I don't chop" and "either you chop or you don't".

I'm not particularly experienced in live games, especially ones with psycho women, and wanted to know who was in the wrong in this situation. Are the standard rules to always or never chop? I feel that these rules would be abused by angle shooters and dishonest people trying to pick up a few small pots. I personally feel the proper way to play is to push every small edge, and chop to avoid rake when both players hold rag type hands.
Thoughts? Opinions?