Yes, lets keep beliefs out of it
Your point about LA Jotun is true from practical standpoint not from thematical one. Jotun culture and background has nothing pious or anti ermor about it. I would expect an anti-ermor nation to be along the lines of MA Marignon or Pythium, only in LA so some adaption is required.
As for LA R'lyeh, what's wrong with high MR thugs/SCs with starshine cup and amulet of antimagic? - they will be pretty hard to paralyze/kill. As for dreams, doesn't high MR and bodyguards help?