Right, Ba has explained this to Garner. In case anyone else didn't want to read the description of the new diplomacy rules, it works like this:

Diplomacy affects very little in social situations. How people feel about the players depends entirely on what the players do and what they say. It is all roleplayed. Diplomacy comes into effect only where players need to get an NPC to accept a specific deal. At that point, they roll diplomacy. Ba sets the DC based on the NPC's level, wisdom, and conditional modifiers. That's how it works. Okay?

Also, changed the half-orcs to make them a bit more balanced against the other races.