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It is my understanding that Deathtouch is an effect that is only associated with combat damage, therefore the use of an ability would not activate the Deathtouch effect. But that is just my understanding, I am not an official on the matter. Hope this is helpful.

It used to be combat damage only. They changed those rules in 2010 though, so yeah, all the creatures would die. As for the example of a "tap to do 1 dmg thing", that specifik example was used in the 2010 rules explanation video for deathtouch - meaning that it does work like that, and the target creature will die.

Deathtouch is all damage. Since i'm a sort of old-timer player, i still have some non-deathtouch cards that are lying around that still have nearly the same affect. Take voracious cobra for example. It only destroys creatures it deals combat damage to, and its damage cannot be divided between creatures.

Well, news to me. Sorry for the faulty information. And thanks for clearing that up.

Yep, it's now a board-wiper to everything without protection, regeneration, or indestructibility. This is why basilisk collar on a tap-pinger suddenly gets a lot more dangerous.

If Basilisk Collar was equiped to Palace Guard, would just 1 creature be killed assuming palace guard wasn't beefed up?

[quote]A creature that's been dealt damage by a source with deathtouch since the last time state-based actions were checked is destroyed as a state-based action. See rule 704. [/quote]

That's built into deathtouch.

702.2. Deathtouch

702.2a Deathtouch is a static ability.

702.2b A player assigning combat damage from a creature with deathtouch can divide that damage as he or she chooses among any number of creatures blocking or blocked by it. This is an exception to the procedures described in rules 510.1c–d.

702.2c A creature that’s been dealt damage by a source with deathtouch since the last time state-based actions were checked is destroyed as a state-based action. See rule 704.

702.2d If a permanent leaves the battlefield before an effect causes it to deal damage, its last known information is used to determine whether it had deathtouch.

702.2e The deathtouch rules function no matter what zone an object with deathtouch deals damage from.

702.2f Multiple instances of deathtouch on the same object are redundant.

Bonzai: since you can't divide 1 damage into fractions (outside of unhinged anyways) you can only deal damage to one guy as long as he's unpumped.