So as I see, there seems to have been plenty of suggestions to continue the Dragon Knight Saga. This one isn't much different, but I thought I'd just shout out that it's still an awesome concept, and I too, would love to see it being used more.
While the gameplay was... well, a bit awkward, the story and the humor and everything that matters the most in an RPG for me, was so great, that Divinity 2: DKS became one of my all time favorites. And since I grew up with games like Dragon Lore 2: The Heart of the Dragon Man (Dragon Knights, you didn't get the whole idea from this one, did you? :P) the effect multiplied with the aid of nostalgy.
So as for my actual suggestions:
The Hero of Rivellon being crowned the Dragon Knight Commander, sovereign of the Dragon Knights, and being tasked with rebuilding the order. You begin the game with one of the disciples, a human of humble origins. (Perhaps a bastard of Richard of Aleroth? That'd be funny. :D)
The Dragon Slayers, having the hate for dragons rooted too deep to be forgotten, rebel and are formally disbanded by the divine. Bands of slayers form outlaw communities somewhere remote and away from the law, still continuing their "holy mission", claiming the Divine Incarnate that returned to Aleroth be an Impostor, a plot of the hated Dragons.
Damian has given up (or so it seems), His attempt at armed conquest through the black ring, and has forged an alliance with the renegade order of the dragon slayers, using them as his spies and assassins. He has managed to infiltrate the council perhaps, and is trying a political conquest, while building a small army of flying forts and black ring troops, to distract everyone from his true goal
Zandalor having of course guessed the Damned One's machinations, tries to warn the people of Rivellon, but since that unfortunate "I'm sure Talana is guiding the Dragon Knight, and Ygerna's life will be Damian's demise" -thing, he's not taken very seriously.
The order of Dragon Knights, being rebuilt under the tutelage of the Hero of Rivellon (He needs a new name, something like a title, a bit like Lucian the divine has. Something given by the people, since everyone who played him probably gave him a cool name. And yes I believe it should be a Grey haired old man, just for the epicness of grouchy old farts.) who in turn, has been tutored by the Patriarch, who wishes to aid in preserving the ancient wisdom and tradition of Draconic heritage, are being kept busy with fending off the Slayer assassins, black ring, goblins and what not. Maybe Yuthul-gor would be rearing it's ugly orcish head?
Perhaps you should search the Hall of Echoes for Maxos, finally letting us know what really happened.
Just some ideas for the beginnings. :)
By the way, Hi, I'm new here. :D (Been thinking of joining for years, now I did it!)
-Jerrod-