My hypothesis. Red cloak wins, and the Dark One decides a 'level playing field' isn't enough. He makes a complete reversal, were a few goblins can lease a humanoid city. Red cloak feels betrayed, because he has said that if gobliniods can thrive on equal terms, they should accept their lot. The oots, who have retained their levels by a deus ex machinima of some sort, go to punch the Dark One in the face, and run across Redcloak, who decides to make the inevitable battle into a relatively peaceful negotiations. I have no idea what might happen next, though