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Goodness, I check on the thread after a few days and come back to all of this, lol
I would like to address a few points; none of the historic/political ones, of which I am no expert, but I can talk about a few things that clarity would be helpful on.
In regards to hybridization, crossbreeding, whatever you would like to call it, I don't approach anything from a fetishistic or furry perspective. This is a high fantasy setting, it has cat people and dragon people and minotaurs and such, and simply because furries/scalies/whatever happen to be attracted to those has no bearing on me or my decisions. In all things, I try to be impartial, and act in good faith; minotaurs are cool, catfolk are cool, dragonfolk are cool. I don't see them as inherently sexual beings, even if our sexual characteristics are applied to them (for example, tits on a lizardfolk/dragonfolk etc). I don't believe that the mere act of including these things in a setting makes one a fetishist for them.
On a more specific note regarding hybrids, due to one player (well, more like two or three) I have been developing a chart in regards to what species can interbreed, inspired by the old TOEF but updated with my own personal beliefs as I find that book's chart to be insubstantial for my purposes. However, one thing I am carrying over and have always had as a quality in my settings is the ability of extraplanar creatures to universally breed with mortals. For example, demons, devils, angels, elementals, eldritch beings, etc, and yes, Dragons are part of this group, being inherently magical to some degree. Part of this is due to magic, part of this is due to shapeshifting capabilities, or something else along similar lines. Tieflings, aasimar, half-dragons and others are all part of this logic, much like the half-demons who beset us this age, who strictly speaking may not even be demons if I were to actually reveal what that woman was, but I use half-demon and half-devil interchangeably for our civilization's purposes as they would not know any better and the distinction doesn't matter much at this moment.
Note that hybridization doesn't always turn out pretty; eldritch entities in particular, being horrifying Lovecraft abominations, don't turn out well. I often point to the Dunwich Horror as an example of this.
In regards to the topic of bestiality that was raised, I don't consider consenting sapient creatures to be bestiality and refer to pic related.
In regards to the warden, the isles, the dragon's loyalty and such and concerns for the future, I'll just say that, like with every civilization each player controls, I have nothing planned and leave it solely up to my random event generator each age to determine story elements that get introduced or changed, but if nothing along those events which are generated upsets the status quo, then the status quo continues. Consider also that things could turn out to be even better for our civilization as a result of what happened this age.
