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Did the prices of what you guy with gold suddenly go up? No. Did the prices of what is bought with slaves go down? No. All that changed was the exchange rate. Thus if the decision used to be 8 crossbowmen or 1 devil it is now 16 crossbowmen or 1 devil. Thus, blood was heavily nerfed.
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This is flawed reasoning. Increasing the value of provinces does not nerf blood in any way, so long as the % income devoted to blood stays the same. Imagine if all provinces gave you 1000x more gold than they do now. Would you be scared to play a blood race? Hell no you wouldn't! Would it matter that blood slaves now costed an absolutely rediculous amount to get, costing you what would in other (normal) games be your whole -game's- worth of income??--of course not.
The thing is, if all provinces gave you 1000x more gold than they do now, you -won't freaking care- that you're losing tens of thousands of gold to blood hunting. You're going to have more gold than you can spend anyway!
That is the extreme case, but it scales back as well. It's all about % of gold devoted to blood hunting. Increasing the inflation of the game does just that -- gold is worth less than it was before.