It's a significant hit, but nothing you can't fix pretty easy with low-level turning quests (feeding bone chips to Lashun Novashine, bandit sashes in SQ, the gnoll fang / moonstone quests, etc)
And if nothing else... it's Priests of Life faction. Very isolated. The only time this faction is ever important is if you're a cleric / paladin trying ot do their quests.
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