A few years back I decided to separate the KKI and previous factions and KKII to present factions into two different geographical areas. For now, the two differing factional groups do not interact. To me, the differing look and feel of the two makes it hard to explain why they are like that.
So, the Lion faction is one of the main kingdoms in this new area, along with the Crown knights, Dwarves, Orcs, Skeletons, and other factions using KKII era shield and color schemes (yellow and black dragon knights, for ex). The Lions are a large kingdom, or a small empire. They have a King/Queen, several Dukes with usually three Barons each under them. This is how the Crown empire is set up as well. Both are "good" factions. The Dragon faction is ruled by a lich (very old undead wizard) and half-demon (cambion) knight. The dragons tried to occupy Lion territory during a power struggle inside the Lion government but the Dragons were not strong enough to hold onto it when the power struggle was over. While the Dragons are a strong faction buy themselves, they are not stronger than the Lions.
In times past, the area that is now the Dragon's was ruled by the KKII yellow dragons. The yellow dragons had a vast empire, not unlike the Romans did in Europe. As that empire wained, the merchant son forsaw this and started to plan ahead. He gained power and experience by adventuring as a Wizard. He stumbled on an ancient dragon, at the end of its long life span. He then learned high level magic from the dragon and used the symbol of the dragon to name his faction. Dragon society is more rough than Lions, the Lions caring more for their people. Small battles occur along the border now and then.
These two factions are still under development, as I am still finalizing past histories with the present state of affairs. Now there is the task of setting up of how the Dragons will interact with the other "evil" factions such as the Skeletons and Orc factions.
Power corrupts, and absolute power corrupts absolutely!
Despise learning and make everyone pay for your ignorance.
The water that floats a ship is the same that sinks it.
My LEGO figures keep me from being evil, drat!!