There’s an Ogre Fist in the castle, so armor can play such a nasty trick...
Yep, and there’s also a 1-2 level spell prohibition. So, using Avatar of Death in the Castle is a questionable strategy, even with the red orb. Unless it works as a surprise if the opponent isn’t aware of the trick.
Based on my experience in War of the Tower (where the orb is banned), Avatar of Death is either for a rush on the 2nd week or for a second front, and it’s better to equip the Pope with normal artifacts. I think the niche for Avatar of Death in the Castle is roughly the same.
However, using Ogre Fist and Avatar of Death with Chain Lightning in a full-fledged game is quite likely. I’d estimate it at 20%.