Interested with a few questions regarding the remaining level of magic.

Will characters with high levels of magic (wizards, clerics and such) retain any amount of their power?
Does divine magic (magic of the gods, clerics, paladins, etc) exist along side the arcane (wizards, sorcerers, etc)?
If so, does this magical famine apply to divine magic as well?

And lastly, what is your policy on playing non-humanoid races that have sentience (such as the dragons)?