They never explain how Ygerna makes contact with the player. The tricky bit is that she has a lot of knowledge that seems like it would be unique to Talana.
If Ygerna can contact people at will from beyond the grave you'd expect she'd contact Damian.
I'm starting to think the real kicker of the ending isn't that you lose, but that you lose without reasonable explanation. I fear the reason the ending isn't leading into anything is because they hadn't thought anything through.
Something else I'm wondering is what exactly does Talana give you Dragon Knight wise? Is seems that Dragon Knights are made not born so potentially anyone could become one.