The divine seems to be someone who has a lot of regrets, not someone who is delusional.
I don't think that the Divine would become consumed with anger if someone were to kill Damian. His characterization from the scenes he had in DKS seems to paint him as someone who regrets his own failures, not someone who thinks Damian can still be saved. I think he would regret that Damian had to die, but he would accept it as the price which had to be paid.
