And I do hope that economics and trade plays more of a part in this one. The Draconians would make very valuable mercenaries- if one has a powerful fleet but not-so-great planetside forces, then the Draconians would be perfect! Of course, if you don't pay them enough and try to cheat them, you may find that fleet's crew getting slaughtered from inside out, and the ships suddenly disappearing to Draconian space.

The Faerie, I think, would appreciate not having to fight. Having someone else fight in the place of your own much negates casualties, methinks, and the Draconians won't give an inch on the ground. Space is a different thing, but that's why they have planetary defense!