Oh, I didn't think that worked. I'll update the post accordingly; thanks.
It is, it looks like we just missed updating the description text in that update. I'll make sure that's corrected for in a later update.
Actually, I just saw our bug ticket for that get resolved; apparently characters in slots 101-125 (ie the newest ones a lot of long-term players would have) are what are affected by the bug. There's already an app store update waiting to be approved to fix a few other major problems, but we'll have a fix for this issue in the one after that.
It's definitely expected to build a character with at least some HP from talismans (if not a health talisman or two), but I understand where you're coming from.
The intent for building defenses on a character is to find a good balance between adding HP and adding Def/MR, but it sounds like it's hard to get enough Def and MR to compensate for the amount of HP given. I'll make a task for myself to revisit this and do either something along the lines of what you're suggesting (make such talismans more glass cannon-y by giving more Magic than comparable talismans) or improve the Def/MR given on talismans to encourage more of a balance (or more of a reason to push more HP or more Def/MR depending on your opponent/your team comp).
125 character slots is a technical limit we have right now, but the intent is that character inventory (and talisman inventory) will be expanded much more once we're able to fully test the implications of extending it. It's on our list of things we want to solve sooner rather than later, but without diverting too much attention from releasing PVP.