Well I believe the 'burn out' effect is kicking in here. That is to say over time you start to lose interest in something but you need to give it time to build. That being said, I believe that the last event did have something to do with part of the burn out effect. Honestly the only way to fix it is to let the players respark themselves and breath life into this post once more.
Rush I feel bad for jumping into this and honestly tried to salvage the Warg thing, seems things got a little messier then expect but that doesn't mean we can't fix it.
By all means we need to get some ideas flowing before the next event/city entrance, it might help re-ignite that spark once more.
Also thin: Some lore explanations wouldn't hurt. Give people some more idea about the inner workings of critical things, Magic being key, that will aid in giving people more idea's how to work it and how to stay within the realm of the Story.