Or rather, it doesn't change their personality more than it says it does.
If the Evil Villain collected Wingback Chairs, then after the change he'll still collect them. If he loved to cook, he'll still love to cook. If he liked sarcastically mocking people, then he probably still does that. Etc, etc.
It's arguable that if he loved to fry orphans, then he doesn't like that anymore. Some changes are to be expected.
Sure. But I don't think that means that convincing arguments are the same as brainwashing. And while in 3.5 Diplomacy might have elements of this from an outside perspective, that doesn't mean that's how it works within the game either.