Wow you put a lot of great thought and work into these ideas. I'd like to give you a few more suggestions if you don't mind. First instead of ogres what if Bal Rattha was mainly populated bt human barbarians? They could be a small NPC faction with a few units that can be hired as mercenaries similar to the way dwarves are now. My next idea is for what is currently called the desolate hills to become a melting pot of monstrous humanoids. Along with goblins there could be trolls ettins gnolls (I know you said they seem a bit too much like werewolves but I love hyena men) and giants. Wizards are fairly active there so perhaps they created the creatures through magic or summoned them from other worlds. Again it would be an NPC region with interesting and dangerous new enemies with the possibility to hire some of them.
I still feel that lizardmen should be lumped in with dragons. The insect faction would certainly be unique but I think that might work against it. These are just my opinions though.
Awesome ideas maybe some day we will seem a few of them in game!