Tldr; I will happily doom an entire species if it does not please me sexually, I have no morals.
I am just gonna start, I respect a man who never compromises their ideals, fair enough lmao.
Realistically I think she's getting a better chance at re-population and I doubt she values the dick over her entire species.
Whil I can understand where you come from, fhers are two issues:
A) She does value her entire species as a whole, she only accepts Nykke and Alrythe because her species is dying out and she knows way to well how loneliness is downright torture (and also the only reason why Alrythe joins the gang if you have more than 5 kips, you are showing that you are incredibly competent at breeding more Frostwyrms, or at least half-breeds) hell he and Valrynn only accept doing "Conservation sex" for purebloods solely because they are dying out because both are incredibly unwilling (both emotionally and physically) to do that, this may seem like nothing but as shown in point B.
B) Being a herm does increase their survival because this way they have 2 children at once, in fact that is the "uncommon" offspring rate because both Frostwyrms got impregnated at the same time, you can even get her "Game over Ending" way quicker if you are a herm, it also acts as a "second chance" genital because if either one gets infertile/sterile then at least they have the other one for breeding, that is also shown in Laquine herms who are saw as great for being capable of both having and giving offspring. (And iirc Kui-Tan and Gryvain too) so removing the dick if anything would decrease it, besides she only uses it only after when releases literal years worth of sexual pent-up if you have a vagina because otherwise it's completely optional.
Gryvains are fully hermaphroditic as a race but you can forgo the vagina through medicial science
I think there is a strong false equivalency there because there literal 0 information regarding Frostwyrms, you can check on Codex, almost if not literally everything starts with "Unknown" and wild speculation, Steele is seemingly the only (recorded) person to have managed to contact a Frostwyrm peacefully and Lessau treats their relationship as incredibly game-changing for how they are seen when at best it's literal just "I talked with a Dragon and we are buddies"
Gryvains have been in the Galaxy for who-knows-how-long, science has since managed to adapt to them and do compatible TFs, Frostywrms were just seen as wild beasts that can't communicate, there is pretty much 0 medical and scientifical knowledge for the latter.
I'm also going to be entirely honest and say I don't know who Alrythe is because I haven't played in awhile either but oh look it's just more futa.
I mean she does state that all Frostwyrms are herms on her way to the den, your daughters and Nykke are too, so ofc he would be a Herm too lol.
(besides is it really Futa if the guy seems himself as a guy despite having a vagina?)
Don't get me wrong though, If you like futa that's perfectly fine... but acting like they NEED to be futanari is ridiculous.
Oh no I am not saying that, I am saying is that while I do understand where your coming from, your way of solving the futa issue doesn't really make sense for me, I can understand your reasoning and can even agree with some of your issues but I just don't agree with your way of solving it really.
I don't like Futa, I think it was a fair compromise on making them because you are not locked on just getting dicked or dicking dragons (especially since the other ones only came like, a entire
year later if not more iirc) you were mostly planned to just meet two Frostywyrms so no one is really locked of having to play a specific gender to get it's content.