Yes, use their choice of skills to inform you of the type of game you want. No, this does not mean you avoid social conflict. In this case, I'd interpret the skill choice not to mean that they want only one type of conflict, but that they want to approach conflicts so that when everything is on the line, a physical conflict is given weight. Failure at social conflict will create barriers for their paths, forcing them to take more direct measures to get what they want. This is good, because it reinforces what they see their characters as being about, seeing as how they choose a bunch of non-social skills.
If I was playing a high-physical/low-social character, I would actually jump at the chance to get into social conflicts that I'd probably lose. I'd get Fate points for conceding, the cost of losing isn't nearly as bad as the cost of losing a physical fight, and losing would be guaranteed to push the story into a more interesting direction. Then, when that interesting direction pushes things towards a huge climactic final battle where everything is on the line, I use my banked Fate points to pull out the awesome.
Of course, there could be other reasons why people go low on social skills. A lot of gamers don't expect a characters social ability to come into play, preferring to let the players ability to talk playing the dominant role in resolution. If this is whats going on, then there is probably some mismatch with expectations. It might be better to alter the way the game handles social conflict to accomodate this, if thats what the players all want.