Yes, letting Angus be Duke was a very surprising move, but it still took a lot of planning to get everything to happen at the right time (although the City seceding was a turn late I think, which was almost disastrous). That along with the incredibly fortuitous turn of events that we discovered a city hidden in Hollies Hills helped everything go the right way...
But Giblot's downfall is down to Giblot...
Yes, that special dispensation--that no other realm in the game has been given--bothers me, OOC. Also, the Lich King thing too, although I've only heard second-hand about the Lich King.