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So the guy who was asking about why Sapient Pokemon would willingly let themselves be "subjugated" got me thinking. I tried thinking of other /tg/ things I could use as reference besides the Changelings I mentioned earlier, and I can't really.
Thinking about it, Elves and Dwarves should be dominating the scene, right? Long life, access to cool powers, a rich history before 'Umies showed up (sound familiar?) should have left them to run the place.
But it's usually because of GM Fiat that they don't. Sometimes natural disasters befell them, they fell to one of the Seven Sins® that collapsed them, or like DnD Dragons, they just don't get along and have natural inclinations to fight each other.
As for why work for Humans, probably the same reason explained in the DnD Comic (the IDW one, go read it) and they just weaponised idea guys. They know that 'Umies are crazy enough to do things they could never think of and they would get stronger in the process.