WHAT?! -__-*
I got interested in the backstory after running Gianthold Tor (I was really confused about the Stormreaver's motivations as I was sitting there piking), and actually bothered reading a bit of the introduction guide of Eberron. You don't have to get very far before you run into this:
Later on in the guide it gets more detailed with this:Originally Posted by The Grand History of Ebberron
Now what, in any part of that, gave you an indication that the dragons became an endangered species as a result of their "war" with the giants? It wasn't a war. It was a slaughter. A butchering. The dragons OMGBBQPWNED the giants then went home. Its what they got for first blowing up a moon, then trying to use the same reckless tactic for a simple slave rebellion in the aftermath of driving the Quori out.Originally Posted by The Grand History of Eberron
Why would dragon encounters be "rare?" Having skimmed more of it, the main reason why dragon encounters are rare from a player character's point of view is because legally, due to reasons mostly related to the prophecy and the experience from the giants, dragons are technically forbidden from expansion beyond Argonnesson without Council permission. Red tape and red tape alone is what keeps the entire planet from being utterly dragon dominated. They had an age where they freely roamed wherever they wanted. Some got buddy-buddy with the giants of Xen'drick and that led to a civilization they now deeply regret. Hence most of them simply stick to their homeland, and they have been doing well for countless millenia.
Their absolute numbers would have us consider them alarmingly common by most DnD accounts. In Eberron, you can have as many dragons as you want. Butcher them all you want too. Matters not. The only story excuse you need is that this is Eberron.
Now where's the Green Dragon? /signed
~TheHolyDarkness Out~