Not sure E10 is worth it - too expensive for the huge extra cost. But E9 is great for Arco, perhaps mixed with another bless as well - I like E9 N4, or E9 D4, or N9 E4, key for me is having either a strong E or N bless with them.
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Wormwood and wine, and the bitter taste of ashes.
AFAIK, no:
Upkeep is halved for units with the 'holy' (blessable) tag in the unit data. This has nothing to do with actually being blessed (what the shroud does).
Appointing an unit as prophet makes it upkeep-free, though.
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As for AI the most effective work around to this problem so far is to simply use an American instead, they tend to put up a bit more of a fight than your average Artificial Idiot. ... James McGuigan on rec.games.computer.stars somewhen back in 1998 ...