I did the Dornagal race yesterday for a WQ. Good lord, what a horrid place to put a skyriding race; a capital city with terrible FPS for a significant vocal percentage of the player base (based on the amount of threads I've seen on the official forums and reddit), when you need the game to be responsive to hit the rings.
Did they have a race in Valdrakken? I remember doing races in Thaldrazus that took me past the outskirts of Valdrakken, but don't remember any actually set inside Valdrakken.
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AFAIK we don't know that yet. All we know is that whatever the anomaly is caused them to develop behaviours, language, and demeanors similar to dwaves. I think the best bet would be an Old God/whatever was in the mural - the Curse of Flesh caused the main Earthen to develop into the dwarves that we know today, wouldn't be out of the question that a shadow/void entity might cause a similar evolution without straight up fleshifying them.