Thanks for the question, I think it's an important one!
I never meant to romanticize colonialism in this game, the idea is actually that the fairies and lycamorphs moved to the forest at about the same time (Which is why the town is usually called a "village" or "settlement", not a "colony", though I believe I slipped up a few times and used the wrong word) - Each society has their own territory, and for a long time there were conflicts and quarrels between them. Only during the present of the game's story, diplomatic exchanges have reached a point where they're on their way towards peace, but there is still a lot of distrust and biases on the sides of both the lycamorphs and fairies.
With that said, it's true that the lycamorphs generally appear rude in the game because the only one we meet is a big bully (and yes, it's always the same lady). That's probably why they come across as pretty one-dimensional. It's something I'll keep in mind for future stories!
