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HQ:
190 (-2CP) Lord Discordant w/Baleflamer, Magma cutter, MoS, Flames of Spite (wlt), Thaa'ris and Rhi'ol the Rapacious (relic)
105 (-1CP) Master of Possession (Pact of Flesh, Warp Marked) w/Liber Hereticus (relic)

Troops:
148 6x Legionary w/Balefire tome (Prescience), Heavy chainaxe, Power fist

Fast Attack:
105 Venomcrawler

Heavy Support:
180 Defiler
270 3x Obliterators

Total: 998, 0CP

With everyone in the army as a Daemon(kin) except for the Legionaries, Warp Marked gives the entire army +1 to wound. Prescience gives the Obliterators +1 to hit (most of the army's firepower), and everyone has melee re-rolls to hit. MoP is buffing, smiting, and healing every round — maybe even bringing back an Obliterator — and casting at +1 from the Venomcrawler. Maybe even casting at +3 by stabbing a Legionary and hoping the legion trait soaks the mortal wounds.

The disco lord is a blender with 18 melee attacks on average, re-rolls to hit and wound (with that +1 to wound), and extra MW on 6s. For what should be the least threatening unit, the Legionaries with those two big weapons and re-rolls to hit can put out a lot of damage. They might even be worth using Hatred Eternal (fight twice) on.

Aside from the great legion trait, Word Bearers have a good secondary for taking the center of the board with the MoP and also have some nice defensive stratagems, especially Hexagrammatic Ward to completely negate a big hit for 1CP. The disco lord can also use Infernal Engine to reduce incoming damage and Murderous Perfection on offense (8-damage Magma cutter).

However...

I'm not sure it's a good idea to go all offense on the disco lord instead of layering in some defense like Mark of Tzeentch and Gorget of Eternal Hate. I also might be spending too much on the Legionaries, since they're actually the squishiest unit in the army. Maybe I should ditch the weapons and add a seventh model, or find somewhere else to spend the points? Finally, I'm not sure I'm convinced on the Defiler. I have a converted model I love, but has anyone had experience using the Defiler with the new rules and seen how it performs?

Any critiques or suggestions are welcome!

I ran a pretty similar list to yours recently. I'd drop the daemon weapon for Intoxicating Elixir. Disco Lord is already a blender and while the Elixir is a once per game use, it can keep him alive for at least a combat if he gets into a tough fight plus give him extra swings. I'd drop the defiler and try to get a squad of Possessed or Warp Talons. Possessed are ridiculously good. Warp Talons can be a bit fragile even with 2 wounds, but they are fast. With the WB trait and their Warp claws they reroll all failed to hits in the first round, then reroll all wounds. Both of those units are great targets for your MoP to buff as well.

Yeah, dropping the defiler is probably the right call. I want it to be good, but 6-7 possessed can put out a lot more damage and are at least as tough. I don't think I had really noticed the possessed 9" move, but that's quite nice. Of course, that would require modeling some possessed... maybe CSM with daemonette arms and some head swaps?

For the disco lord, has the Elixir worked well for you in practice? It's amazing under the right circumstances, but I worry it won't line up right very often. Flames of Spite seems almost like a requirement on the disco lord, but a number of mark and relic combos seem interesting. On defense, MoT + Gorget for basically a 0+ save (including AoC) seems quite strong. Or there's Undivided + Ul'o'cca.

Magma cutter vs. Techno-virus injector also seems like a tough call, very dependent on the opponent's list.

The new possessed kit isn't out yet unfortunately but if you have any of the greater possessed they'll be fine and be on the 40mm base.

There are a lot of viable configurations for the Disco Lord I feel. The problem with giving him MoT is that unless you give the MoP the same mark he can't buff him with his God specific spells. Gorget is an option getting the +1 to armor. Giving a 4+ invuln in the current meta don't seem too important. The lord is also considered a daemon engine so he regains 1 wound a turn. I honestly didn't even use the Elixir the last game since we only had 3 wounds on him and with MoS he slaughtered stuff before they got to swing.

As for Magma Cutter vs Injector, I think it comes down to what you'll face more. The Magma cutter is only 6 inch range so might not come up often. The injector adds damage to all attacks against vehicles .

I figure most of the time the disco lord should be charging from within 6", so if he's going to get melee attacks he can probably also use the Magma Cutter (and as a vehicle can also fire it when already engaged).

When fully buffed (target is Warp Marked, disco has Flames of Spite & WB rerolls in melee) against a T7, Sv3+ AoC vehicle:

Magma cutter gets 0.83 hits, 0.69 wound, 0.58 unsaved * D6+2 damage = 3.18 wounds.
Chainglaive gets 5.83 hits, 3.24 wound, 2.16 unsaved * 2 damage = 4.32 wounds.
Bladed limbs get 3.89 hits, 2.16 wound, 1.08 unsaved * 2 damage = 2.16 wounds.
Mechatendrils get 3.89 hits, 2.16 wound, 0.72 unsaved * 1 damage = 0.72 wounds.

Techno-virus injector would add 1 wound for every unsaved melee hit, or 2.16+1.08+0.72 = 3.96. So against a typical vehicle, Techno-virus injector does only a bit more average damage (3.96 vs. 3.18).

Advantages of Magma cutter: Works against non-vehicles.
Advantages of Techno-virus injector: Slightly more damage against vehicles. Slightly better range (charge vs. 6"). Can work twice per round (also in opponent fight phase).

The injector is clearly better when fighting vehicles, but the Magma cutter is still okay for that. And the Magma cutter being able to take out a terminator or character (or even just a marine) is pretty nice. I think I lean towards the Magma cutter but I'm not sure.