"Church" can be a very misleading term when applied to Malkioni sects. The origins of the Atroxic sect dates to the Second Age, being based upon the insights and dark secrets of Ethilrist himself, passed on to his household wizards. The Atroxic wizards found sanctuary with Ethilrist himself (who achieved immortality circa 1050 if I recall correctly). Given that Ethilrist commands several hundred horse-shaped demons of the Underworld - what better sanctuary is there?
As for their "heretical" status - according to who? The Red Emperor recognizes Ethilrist as the rightful ruler of that Well into Hell that Ethilrist built his town around. The Tarshite kings and Feathered Horse Queens all recognize Ethilrist as a dangerous demon-lord, but not a "heretic" - same thing with the Princes of Sartar and queens of Esrolia. Certainly Ethilrist sees nothing improper about his understanding of Glorantha. His enemies were the Jrusteli, which pretty much everyone agrees were evil.
Jeff
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