The Ozar guy is not giving you people the whole story.
The developers of Dominions have never come out and given any attitude that would suggest NO, YOU WILL PLAY THE GAME OUR WAY AND NO WE WILL NOT REMOVE THEM QUIT ASKING.
The truth is very few Dominions players complain about horror marks, curses and especially insanity, so they didn't change it because the majority of players wanted it left in. They are up to version 3.23 of the game and all the changes are bug fixes, new content or changes suggested by the player base. So it is a bit unfair to call them "morons" because you got one side of the story.
Curses are permanent, but it is not the end of the world. In Dominions a curse makes you twice as likely to get an affliction than before. In my experience, investing in a level 1 magic item called "The Bark Skin Amulet" negates the curse, or at least lessens it. Using this level 1 magic item, I have avoided afflictions on my Pretender the entire game. BTW, you don't play as a god in Dominions, you play as a Pretender trying to rise to the level of god through persuasion (dominion) and conquest.
Horror Marks in Dominions meant that horrors would attack you as a special combat that happened more frequently as you received more horror marks. You were never "overwhelmed" by horrors since only one can attack you at a time, period. Many of the pretenders could be built by mid game to kill any horrors that attacked them, in essence making the horror attacks basically bonus exp. There is a mod that puts a spell into the game that removes horror marks btw.
Insanity. This is the most trivial of the three afflictions. You can only gain this affliction by using 1 cursed item that is unique, as an inherit ability on one of the most powerful units in the game or by fighting 1 nation out of the 60+ that spread insanity through their dominion. In most multiplayer games that nation is banned now because of the population killing dominion that it spreads in addition to the insanity, but before it was, often it was pretty easy to punch straight to their capital with certain nations such as Mictlan and Atlantis. In one MP game I was able to defeat them with only having two commanders get the insanity affliction 25% and 50%. Many of my troops received the affliction, but it has absolutely 0 effect on the game when a common troop receives it.
It's not bad design, it's just another end to your units besides death. By your reasoning, death in a game is a bad design decision. No unit is so important in Dominions that it cannot be replaced except for the Pretender, and I imagine the same will hold true for the sovereign in Elemental.
Be careful not to dumb our game down too much with your complaining. The people who don't mind such things may not be as vocal, but we are probably as numerous as you and we deserve a game with at least a little bit of challenge, surely a balance can be struck between both camps.
Thanks.