..jeez.
I can sort of understand odd game design decisions for something like Battle for Wesnoth with its deterministic combat system since it's a free game and it's made the way it was because the developers like it that way and hey, it's free. That being they case they can easily say "You don't like it, go make your own game!" For a commercial game, however.. it's um, rather odd to not only implement such a frustration, but to actually make it impossible for players to at least modify it. I'll say this, that's quite a hardcore commitment to insisting upon a rule. :O
For me, however, it is indeed a deal breaker. Too bad, the game has (Or rather had; after making the thread I saw the forum FAQ that showed that the devs refuse to budge on this point and therefore won't be changing it) a lot of potential. Maybe for Dominions 4 the developers can be persuaded/dragged kicking and screaming into the present, carebear times where you can save whenever you want at multiple points, you don't lose XP when you die, and there are no insta-death spike pits.
(Oh wait, wrong genre..)
[rant](And a Level 1 spell no less - yeeeeesh! Even 2nd Edition AD&D wasn't THAT broken in its harshness.)[/rant]
*EDIT*
OK, one other avenue before I give up on this game - is it possible to mod the game so that all units, items, beings, events, and anything else that CAUSES these effects are REMOVED? You can't suffer from a permanent disability if it can't be created in the first place..