Bane Damage / Ritual

With the periodic area of effect bane, the ritual is kinda worthless for that purpose now.  The only way it would be at all worthwhile is if the bane also negated one's ability to make an offensive action against the target (that being the person holding the bane object cannot be attacked in any way by the baned creature).

I am not decrying bane in totality, only this aspect of it.  It seems like it would be better to drop that half of bane entirely rather than keep it as what it currently is.   

Tim, to answer your question and expand on it a little, yes, Bane damage would bypass the soak, including the bonus soak, from mithril armor. However, it does NOT bypass the other special property of mithril, wherein body damage is converted to normal damage, as that isn't a soak or threshold.

Yes, you can have an undead bane weapon. "Undead" is considered a viable race choice for this ritual.

Does Bane still have the pain effect?

No, that was pretty much the big change

So just to be clear Race and sub race is like  Undead (race) skeleton (Sub race) and  Class vs sub class would be Rogue (Class) Assassin (sub class). If not could I have an example?

You're right about race/subrace, but class subclass is more like:
Mage(class, effects all mages)/Necromancer(sub-class, effects only those with necromancy) or Witch Hunter/Reign

There is no actual class "Rogue" in KR. Basically a subclass is only applicable in cases where a base class can be subdivided, like in magic, sorcery, or the religious classes.