[Chris_Byler]

Any nation can be evil with the right God. (Speaking of which, how were your non-death-using nations planning to get a LaD caster in the first place?)

Anyway, even once you do this, it's vulnerable to assassins with anti-undead items, or dominion push with Purgatory since their priests are busy (which will also zap the undead they've already gotten), or just spamming anti-undead spells/items in general to wipe out the freespawn (or the undead commanders; send over a flying thug with Flambeau and watch the soulless dissolve after their leader goes down) after they reach the battlefield. It's not like soulless are some kind of unstoppable killing machines - without something like Storm or Darkness practically any nation can butcher them easily.

As an exploit, it seems to have a long way to go to catch up to clams, and they've been around forever.