Gremlins are the result of experiments on goblins. Goblins themselves are already of mixed blood.
By the way, this fact is a drawback in Heroes, as gremlins are a completely independent race of fictional creatures.
Regarding having only one race – I thought about that. I couldn't find any allies for the dwarves, except for riding cyclops.
By the way, 6 out of 7 units for the dwarves are dwarves.
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