Yeah, that was what was done in Brave New World. I could see them using the same technique, which would also give them the freedom to experiment with gene splicing and stuff in a safe way. They'd also be eager to find out if cross-breeding with humans would solve their fertility issues, which is why they might want Azdrei'in and Artemis to partner up, so they can find out.

I think most women wouldn't readily agree to turn themselves into breeding stock for an invasive alien race xD To many, that would be a fate worse than death, so it would definitely cause friction between the two races. I also just see fights breaking out between the immune humans and the Lunvalgans while they're trying to colonize, since those who survived the virus wouldn't see them as "good" and would try to defend their planet.