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No, its a hundred percent reduction, look again. I have no more public low issues from low allegiance.
It is possible of course for someone to research other things. After Osmosis tech you end up at the end of that branch.
It's cost effective if dealing with other Allegiances is a prime factor for the player. Depending on playstyle and strategy, there are going to be other branches on the tree people race to research instead.
I'm thinking I might just roll back to Allegiance patch, or even the one just before, because the system seemed the most challenging then. The last patches introduced some nice things, but it also made other things easier, like high building incomes, and replacement of the original unit pool spawn rate mechanic with a cooldown mechanic.
The "Osmosis" tech is similar to all this: introduced Allegiances, which is harder, but then gave a tech to nullify it, which is arguably a lot less challenging than the original release back in May or the patch in June, where you had simply an occupation penalty.
It is as you say, kind of pointless to add a mechanic and then a way to almost completely remove it via a tech.