[Wauthan]

An award for being peaceful and kind is absent from most games I ever played, apart from Planescape: Torment perhaps but then again that was something very different indeed.

A Dominions 2 take on "fighting the good war" then?

Bonuses for being a force of good:

Well being known for taking prisoners and treating them well could lessen the morale of an attacking army. No point in dying for your gods cause when you know that your enemies will stop smacking you around as soon as you drop your weapon.

When the good nation is attacking this morale penalty still rings true. If you know that your enemies will not hurt you or even treat you badly then there's no point at all in fighting to the death against a superoir foe.

Since people usually favor a peaceful and kind god over a vengeful and violent dominion should increase faster for the good guy.

Knowing that you're on the side of a fair and just ruler should make you a really determined defender when the neighbouring God from Hell starts massing your way. Giving up means you'll die anyway and propably a lot worse than the one found on the battlefield.

On a similar account a benelovent pretender should have population increase over time as refugees start appearing at the doors of its temples.

Your casters have a long tradition and skill of using good aligned spells (healing, antiundead, summoning angels etc). They take less fatigue for using such spells and they are cheaper in gem cost.

Penalties for walking the narrow path:

When you're the good guy you can't go around blowing people up in horrid ways. No direct damage spells allowed, save the those specifically focused on fighting the undead. On the plus side there's no "friendly fire" from your mages this way.

No blood magic allowed, nor can you make use of blood magic sites.

Death magic is allowed but only the antiundead and utility spells are available. Undead can not be summoned or created. You respect the law of death and don't force your divine will on the spirits of the dead.

Taking prisoners and treating them well takes a lot of gold and supplies. Basicly you are paying for and army you don't use. Prisoners of war could either be converted to your cause (dominion strength versus magic resistance of unit + enemy dominion strength, doubled for sacred units) or sent back to its home province (for a fee of three times its upkeep cost, six times if its a sacred unit). Note that undead and bloodsummons are not taking prisoners but laid to rest or banished back to hell.

Unrest can not be patrolled away since that means you are executing those discontent with your rule. It can only be lowered by lowering taxes.

As refugees start appearing in numbers they disrupt the normal ways of a province since they need food, work and shelter. This is reflected by a rising unrest level. This means you don't automaticly gain more gold as a good guy but have to take a long term view of your economy.

That's all I can think of at the moment. Brainstorm away.