It's just not fun and doesn't add to the gameplay. It should happen a lot rarer that you LOSE skills and such. As it is we stand to lose the agent, piss off another faction, etc... this additional punishment for playing the game is not needed IMO.
Take a page out of sid mieier's game design class: ADD something for succeeding, ADD something a little less for failing. Taking away for abject failure, is, of course, quite fine, IMO.





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