Yeah, I think you are right. The question of what is good is interesting though. Technically if you were one of the citizens of those nations, being good would mean doing what your pretender god wants you to do, even if it meant dealing out some of Old Testament style havoc upon the unbelievers. Of course today, from a humanist standpoint we would consider such acts atrocities or war crimes.
Dominions has some interesting religious implications when you sit down and think about it.
This kind of changes the concept of the game I wanted to put together though. Instead of Good vs Evil, it has become Not As Bad vs Evil. This is the problem I used the idea "Good or Order", which I'm afraid only complicates things