When I first saw what the dollification chair, it was clear it needed to be revamped. Anyone who knows what it does will be sure to avoid it, while anyone who doesn't is going to lose one of their characters permanently. It's essentially a giant noobtrap that risks a player dropping the game if they use it.
The third point is also a really good point. Levelling up characters is largely built for characters that deal raw damage, leaving some classes (most notably the cursed ones) extremely difficult to level up. Personally, I just reroll until I get better tasks like clearing dungeons.