@BoneyM:
Since this is before Kraka Drak was explored and found completely destroyed in canon, is there a good chance that you will give it your own AU spin and that in this quest it being populated by anything ranging from enduring Norse Dwarves to some new and insane variation of Dwarf/Demon hybrids is possible? The current state of Kraka Drak is not something Mathilde could have possibly butterflied away, but it definitely would be cool to visit an actual mystery as opposed to something that is just a mystery in character.
You have no way to know.
Did Kragg and/or Thorek have any comments regarding the dragon altar other than confirming that it isn't in fact corrupted? Were they even present for the description of what it does and how it does it?
Pretty much "yep, sounds like manling magic."