Thanks for stopping notifying me about new posts, forums! I love it when you do that!
Okay, now that I've finished fussing at the forum software...
1. To the question of healing buildings: no, there is no way to heal buildings, ever. If you lose parts of a town, then it really becomes a roadblock, as you noticed. Possibly we need to implement ways to avoid letting people get around that, such as not allowing the smiting of any building that has been partially damaged or something. All that said, if your enter town gets taken over by another faction (bandits or the opposition), then it reverts to full health and all the flags change to that color. If you then take it BACK... same thing happens again.
2. To the role of the gods, as the original email noted, no that's not their intended function and they barely are implemented.
Gods will never move of their own accord, and their attacks and so forth are working as intended at the moment. So if you choose to just play them as they are played now, that is mostly how they will work. THAT said they also have passive abilities, which are in the next patch. THAT THAT said, they also have active tokens which are coming soon. When you put one of their tokens down, they move to that position and take up camp there until you place another of their tokens. So you can order them around a bit more than other units. It might be that I should implement some basic wander logic so that they just wander a single square per turn when not going for a god token or something, but we'll see. Anyway, the prime purposes of the gods are their passive bonuses and their related tokens, which are huuuuugely affecting the late game. Right now all that's really properly testable is rounds 0 and 1, and 2 and 3 are just kind of extended versions of 1 with gods standing there.