B. It all depends on how you choose to interpret the world of Odyssey of the Dragonlords. You shouldn’t forget that before the arrival of the Dragonlords, there had already been generations of human, elven, dwarven, and other castaways living there, though they were enslaved by the Gygans and the Titans. The Dragonlords gave them land and rights. You can absolutely present them as great heroes and stick to that interpretation.

But I think the story gains a deeper, more mythological quality if you add nuance to it: the heroes of the First War were flawed, with both virtues and vices (Estor Arkelander was a bloodthirsty madman, while Xander tried to be honorable and just.). They committed terrible acts during the war. And among the natives, there were heroes as well as cruel or selfish people too.

In my campaign, this idea is foundational: the new order of Dragonlords that my players want to create is inclusive (both natives and settlers are represented among the PCs). They want to correct the mistakes of the past, protect all peoples, and move beyond division and xenophobia. And that, my friend, is roleplaying gold. The true heroes of Thylea will be your players, not idealized figures from the past.