As it is, Kagha is a very mustache-twirling villain. And the Tieflings are overly innocent and good. It should be a difficult choice between who you want to side with. Both parties should seem reasonable, and following either path should offer a satisfying story.
Currently Kagha is I HATE PEOPLE, I MURDER CHILDREN, I WANTS HAVE COUP, I IS VILLAINY!!!! It's all way over the top. Villains like this are expected for small encounters where you need to know almost immediately who the bad guy is and need to feel okay about slaughtering your opponent. But for full on locations like the druid grove, complete with story lines, multiple characters, and evolving plots -- for those we need more complex characters and situations.
It's true. I played a high elf on my first playthrough, and when I saw the elf druids I thought I'd have an interesting choice ... no, no choices for an elf lover. Kagha is bad, not neutral. I had to help the tifflings kill Kagha.
It's strange that tieflings, creatures from hell, are the most positive characters in the first act, is this such a performance against racism from Larian?