If you're playing as Necropolis, it makes sense to take the initial monsters and level them up using the Skeleton Converter spell. In general, Diplomacy is only useful at the beginning. Later on, in large battles, it becomes meaningless. Overall, I consider Diplomacy to be a useless skill for me, and the aforementioned reasons are just minor advantages.
Question: how (or what) are you going to use to keep all of this without Diplomacy?