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I still enjoy the mod the way it is right now, though. :)
But that is allright. The dwarven warriors need their special gold as well, so I actually like it. No one ever said that every faction has to be cost efficient! The upgrades are still viable options. I played as Alith Anar and was able to get a good shadow walker/warrior army early on because I upgraded only armor (since my limit was 25, I was not able to upgrade anyting else) and this army is still alive and kicking by round 30. The upgrades are not as "cheap" or strong as other factions upgrades but somehow they are still a viable option.
Splendour is capped so far below the cost of the unit upgrades that you can first start using it several dozens of turns into a campaign, and by this point you will probably have 2 additional lords - shame on you, because each of these lords halves your splendour income so you'll very quickly end up with 0 splendour income per turn.
I'm sure there's some strategies, like stacking nobles, that make this mechanic viable, but it's overall much less available than your other unit upgrade mods.