These are what we call the 'YMMV items.' Things that some people find in this work. We call them 'your mileage might vary' because not everyone sees these things in the same way. This starts discussions in the trope lists, a thing we don't want. Please use the discussion page if you'd like to discuss any of these items.
Alternative Character Interpretation: Your lizardfolk ambassador claims to be a champion of liberty and free thought, but a few event decisions like banning smoking, limiting the amount of children imps are allowed to have, and censoring scientific publications whose results her race considers embarrassing reveals she's just as hypocritical and self-serving as everyone else on the council.
Moral Event Horizon: The events surrounding Harrowdale. Namely the undead deciding that genocide was a perfectly reasonable solution to the "sins" of the libertine elven community. Even Edmund, as racist, self-absorbed and arrogant as he is, was appalled at what happened.
Some of the race-specific policies you can enact are rather horrific. The undead want to enslave and mark all nonbelievers and take away their first-born sons as slave labor. The dwarves want to institute a national smoking program culminating in mandatory smoking lessons in schools (that, notably, reduces your population). The imps simply want to build a humongous bomb... whose main component comes from elvish remains (and which, again, reduces your population, implied to be as a result of fallout from the bomb).
Is sacrificing your subjects or wife for power not horrific?
Narm: Quite a lot of dialogue in Dragon Commander comes across as being written for writing, as opposed to speaking. It has the feel of dialogue from a book, and a somewhat stylized one at that.
Uncanny Valley: Oddly, the Undead mostly manage to avoid this. Ophelia may fall into this if you have the imps stitch a bunch of donated flesh over her her new golden body, depending upon personal preference (the resulting model is more-or-less identical to the "human" one.)
The Woobie: Ophelia. She has a disease eating at her body even after she became undead, the bulk of her own populace has no interest in helping her feeling that she deserved that for not being a complete religious fundamentalist in life