KaraQuest 2 was by no means a level 7 quest [...] There weren't really an actual warning for that too, but I rarely see people complain about not being well informed beforehand, most just asks about how to beat the juggernaut.
Give players a chance to succeed, and they'll be fine, even with crazy odds. This quest has failure hard-coded into the plot (which, to me, is only a lesser problem with it).
You also had a legitimate reason to attack them, seeing as they're dwelling in grey areas such as mind control, whereas the Hosts simply offered to turn a blind eye on illegal activities so long as they pay for their secrecy, and would turn said individuals out if they fail. Definitely shady, but not really worth it to try and take down.
Okay, at which point does "the Host" stop to describe their complete business portfolio to you, instead of just doing their cocky vanishing act? Steele just knows that they are a criminal group who could do whatever else on the side, and my Steele's reaction to that is to interfere with them out of principle unless given a good reason not to.
Also, whatever reason you have should have no impact on success or failure...
I see a lot of similar complaints about Poe A
Yeah, I'm in that thread, too, and the complaints are similar - insufficient and easy to miss warning and gross out of character behavior.
You're the only one responsible for not minding your own business and constantly provoks a somewhat harmless, well disciplined syndicate. Of course Steele will be suspicious of the email, but it's your call to go in head first and get captured or stay the hell away from the place.
From the moment the quest starts, the player just gets the option to "press button to continue". It's the big red button effect. At least, there needs to be an abort option - after starting the quest - next to it.
(again, similar to the way old yakuza works very well with the police back then)
Side note:
The Yakuza are named after a losing throw in a dice game, because their main incomes for the longest time were gambling dens and beating money out of gambling addicts and other deptors. As anything else, this got romanticized over time. (I'm not against romantizised Yakuza, but I'm going to point out that they were never really as clean and good as fiction and myth pretends.)
I should stop before I continue this rant any further, so tldr:
You are the one that's actually calling the shots, while Steele simply acts as a sentient puppet dangling at your strings. What consequences of the actions you make is of your own doing, if you don't like where it's going, you don't have to follow down the road. It's not really flawed game design as much as players never caring about the details as they click through scenes after scenes until it's too late.
Nowhere does this quest warn me this will happen:
"You consider retaliation. Invisible as they are, a swipe or a shot would catch them in this window.
They did submit, however… honor for honor. You instead put your [pc.weapon] in its holster and dust yourself down."
Gross out of character actions based on no code of honor (and, in fact, diametrically opposed to several) I've ever heard of, completely unrelated to anything else Steele does.
The rest is just "Here's a big red button! (If you press it you lose half your money.)".