Again, Erik doesn't have anything against the entire religion. This is just with Jor and since he's not ruling Westmoor anymore (at least not with titles to do so), there's not a problem at all. Let the humans with their human religion, you know...
The old dragon is taking good care of former Fontanese "troublemakers". Don't worry. He's happy now, just waiting to see Avamar with 11 regions and what his Perdanese princess have to say. As Judge again he cannot visit the tournament... a shame. He would enjoy that.