So today I had a sermon group with my village and a few non-village alliance members. One of my village mates is a priest of Magranon. He was repeatedly casting goat shape on one of the alliance members from a different village when he accidentally casted dominate on her. She auto aggro'd him, at which point she was automatically KoS'd. She was killed by Templars. When she respawned, she was killed again, at which point the Templars also killed her horse. There are a few problems that need to be fixed. First of all, dominate should not be able to be cast on players. Secondly, players should not be automatically KoS'd when a villager attacks them on deed.
TLDR: Dominate should not be able to be cast on players, and players should not be automatically KoS'd if they are attacked on deed by a villager of that deed.