While the confrontation between the Dragon Knight and Rhode was missed, I'm not sure that it's possible to put it in after the events of Flames of Vengeance, when the Divine is freed and supports the Dragon Knight and explains that the Dragon Knights were framed. The death of the Divine at the hands of a Dragon Knight is the big reason everyone hated them, and that reason is now gone. With the Divine back, it takes all the wind out of Rhode's sails of righteous fury.
i was rather annoyed about Rhode because, like Foulfrost originally said in the first post, i live and breathe along with my character, i i felt i needed to prove myself to Rhode and Regain the honor for the dragons and dragon knights name because damian mind-tricked that dragon knight to imprison the divine, and that is yet another reason that it should be the dragon knight to fight damian, at least have it so your dragon knight fights damian, and when he is on his last legs unable to fight anymore it can be the divine to decide his fate, maybe get damian to re-live ygernas death over and over again for eternity? that could leave room for future games set after divinity 3 if larian wanted, where damian breaks free after centuries of re-living ygernas death over and over again, and seeks ultimate revenge over the dragon knight.
I bet that if there was a survey, the results would probably be that those whose first exposure to the series was Divinity 2 would prefer the Dragon Knight to be the one to kill Damian, and those whose first exposure was Divine Divinity would prefer the Divine to be the one to kill Damian.
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While I wouldn't mind seeing another Dragon Knight game, I would definitely prefer having the Divine as a player character in Divinity 3 (or whichever game it is that will finish off Damian).
The Dragon Knight already regained the lost honour by freeing the Divine. Now it is the Divine's turn to atone for his own failings. Damian was turned to the dark side in part part because the Divine executed Ygerna without thinking how Damian would react. That anger, that fury, of a foster son to his adoptive parent that is the emotional core of the story. That's what started everything. Mind-tricking a Dragon Knight into killing the Divine was a consequence of that first wound, it is not an emotional core in itself.