i will take that as your opinion and disagree with the connotation of you being the universal arbiter of morality here. martial arts has been mixed with religion for a long time. i would guess all traditional Okinawan dojo have a Kamidana and clap two times to wake the spirits. there are also dojo that have a Butsudan, or Buddhist alter of sorts. what about the myth of martial arts originating from Bodhidharma to keep the monks awake during meditation and for health? there is also the complex philosophical structure of a warrior who can kill needing the grounding balance of morality to temper and justify the taking of life. how does a warrior deal with their own existential issue of facing death at every moment? war is hell, are you saying soldiers dont need a God when facing their inevitable death?
i would not be so fast to try and separate a religious framework and moral underpinning from a warrior art that teaches violence. maybe MMA or sport doesnt need religion but traditional warrior arts ,,,,,,well,,i would think twice about that. i would imagine there are countless soldiers who pray to Jesus before jumping into the fray of combat. what makes the east so different and morally repugnant to you?
however, instructors are not Gods,, true. but then, most westerners cannot comprehend the differences between eastern and western religion. the concept of a God in the sky who is all knowing and powerful was very strange to most eastern cultures for most of humanity. i would caution people on their own bias of looking at other cultures through the tinted lens of their own western religious structures.
simple answer is ,,, if you dont like the dojo dont join there. people tend to find exactly what they are looking for.