That's something I'm not sure about - when the game is set. From the original info I thought it was set in Maxos's time when the dragon knights were just starting to become known to the world. The game is basically about one Dragon knight pitched against another both of which are trying to claim territories etc. Now that I read that blog it seems that the story may have changed.
Hmm, as far as I remember elves were dragon knights too long before humans, but we indeed do not know how many were there at any point. They could as well always be low in numbers.
A clarification as to when DC takes place would indeed be great to have, else we are only speculating.