Amdusias was the not-Dragon Knight who was so angry about not getting to be a Dragon Knight, he concocted his own little magic spell to turn into one (and was, it seems, only partially successful).
I think you meant Lovis. And... well... I'm pretty sure we never heard Talana's opinion on him.
As for alliances, that depends on the Victory Conditions the game allows. If the only way to win is by ruling every province yourself, alliances will still be possible, but backstabbing will be inevitable. If a joint victory is possible, then alliances get a lot more interesting. Because backstabbing is not inevitable, but might still happen. So do you really trust the Dragon Knight who just allied with you? Or was s/he wrong to trust you?