I just finished the game, myself, and it's left me feeling frustrated and dissatisfied--enough that it quells most of the replay value, but I bought the PC version and if I sell it, it'll have to be on eBay. If there's a sequel, I will probably have to play it just to see if I can actually save the world next time around. But I'll be tempted not to because the ending here is just so... so... ARGH.
You're right--the PC makes Damian invincible by resurrecting Ygerna. Your Dragon Knight and the Divine are now trapped in some pocket dimension. That doesn't leave much hope unless somehow those two can bust free together or someone else finds out what happens and rescues them. Still, the fact that they are alive does leave some hope, I guess.
Probably, there won't be another Dragon Knight now (which stinks; some of the gameplay as a dragon was pretty cool). What I want to know is if Talana were really on the side of evil all along, since Ygerna was somehow able to possess her or transform into her. I don't expect that all Dragon Knights were evil, but you've just proven Rhode right about the Dragon Knights as of the ending. I think, however, that "Betrayed" might be a better term for your PC than "Betrayer."
As to the six empty spaces in the prison, maybe Damian has to capture six heroes to achieve... whatever he means to achieve. I have no idea what that may be.
As I told a friend: "What the heck did I get that tower built just for me for, why was I the last dragon knight, just for THAT? To destroy the world? But I worked so hard to save it." (And I imagine my character was saying something similar to the Divine while hanging in crystals in the pocket dimension.) We did get told in-game that the tower was built for the PC. Now why build that big tower for the PC who is then going to be trapped in a pocket dimension for all eternity? Maybe the truth is that Damian was meant to be the Dragon Knight, or that Maxos was a supporter of Damian. Maxos comes up in the game so often that I am suspicious that he might be somehow involved. Perhaps he became a god? I have no idea. I just know that after spending so many hours completing so many quests, the ending is a huge letdown, especially with no hope aside from the fact that my knight and the Divine are still alive--sort of.
