[Wauthan]

Just had an idea that might be interesting. Something to do instead de-evolving the existing factions, which might be very troublesome since surely the iceage predates the Ermorian empire.

Why not set the time after the events in Dominions 2? Say the coming of the ice was due to the meddling of the pretenders and the existing factions have been thrown back into a serious "dark age". The magic energies that flows trough the world simply couldn't take the massive use of spells. The world was torn apart, which the frequent disasters of "bad luck" is evidence about. Now the survivors cling to what hope their new leaders can bring.

That would allow the use of higher techlevel armor and weapons than what the stoneage implies but still toss the materials used backwards so to speak.
It would also explain why the magic items available still are around, since we can't mod them away.