Okay, everything you say IS true, but think about it. This guild ISN'T original, I believe that some variation would be nice but come up with actually something original than what every Orenian knight chapter already does. Oh and one thing, what city would let Krug worshiping stereotypical evil knights live near there? I'm sure my city wouldn't.
Edit: Also, if they really did worship Krug then they would be the target of my forced conversion program, then if not then they would get crushed by the Oren military. Quite the sad fate to have.