I've made a number of posts on the rage quitting phenomenon and even a topic arguing for it.
The reason in Demigod is the fact that if you allow the other team to get a head start in levelling, there is more often than not no way of making a comeback.
This is a design flaw in the game.
It is made worse by the fact that there currently is quite difficult to judge if you are facing a team of good opponents or not, and if the other side is full of beginners or not.
It is also made worse by the fact that the in-game communication options are very poor, with no quick-command for signalling for help on the map and no voice chatting or even a permanently displayed chat window.
And this is a newly created flaw, in my opinion:
FPS: In the classic deathmatch, you often respawn at a different place on the map, allowing you to switch tactic (perhaps pick up a sniper gun instead of a close combat fun) and get a new angle of approach (sneak up from an unexpected position, etc).
RTS: With classic resource gathering and base building, you often expand and build a backup base, so if your first one is destroyed, you can regroup and launch a new attack from your secondary (hopefully hidden) position.
Arcade type racing games also often have a "catch up" feature that gives the loosing player a slight speed boost, to give him a chance to compete and retain the fun of the game, but perhaps that is stretching it a bit.
If nothing else, the game badly needs a "team concede" option, though that is not actually a solution to the root of the problem.