There is one good thing about Karmic Dice and that is that it can be disabled.
Karmic dice is an obviously stupid idea and should always be disabled, yet it is enabled by default.
I have not seen such a feature in other games, though the number of D&D games I've played is far from complete, so maybe somebody else has this, too.
And yes if you have karmic dice enabled you can omit optimizing your character, because karmic dice will sabotage any such optimization. You will hit with a certain chance and you will be hit with a certain chance; it doesnt matter what your attack bonus or your armor class is.
If at least karmic dice would just look at the rolls itself and make sure you have no sudden spikes in 1s or 20s, but over a short timeframe you have a balanced mix of high and low rolls, it would still be a fundamentally bad idea but at least it wouldnt screw you over.
Heck, I even have my own realistic translations of the ingame "Hit Chance":
Thats because if you miss it has a big emotional impact, so you remember failures much more than when it works.