I don't remember the game warning me against anything. Maybe it was worded in too subtle way. When I noticed that the patent stopped collecting trophies I wasn't happy, but I had enough of them to last me whole play-through, so I wasn't devastated, too.

Do you remember which dialogue options dismiss him? In case I'd like to sack hime before the patch arrives...

Oh, I agree, it was too subtle for such a monumental decision.

Tell that to someone who only had 396 trophies and at the time only had like 23 orc veterans in the entire game. :(

I replayed my game for a demonic style...

I have since gone back to sacrificing. I even managed to sacrifice my way up from 1 Demoness to 210 via sacrifice and 21 through the wizard's tower (yeah, super late game, that's why I needed to "lose" my trophy gaining capability so I could convert a Lake Faerie into a Demoness. Ah... look at the little army of voluputuous girls she has spawned). :)

I originally converted my army of demonologists up using trophies, but found that sacrificing was ideal there too. I sacrificed up to 180 or so of them, from 51. I had enough trophies to convert all of them too, but I decided to save them just in case I needed to do a one off conversion.

One sacrifice was worth about 750 or so trophies for demonologists.
One sacrifice was worth about 1200 trophies for demonesses.

Considering the highest trophy drop I ever got was like 1000 in a single battle... you could see how double casting sacrifice was FAR FAR FAR more efficient.

Last one. Works even after the bug. Just remember to take all his items before you do.