WizardNazyr
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I think lizards should be a neutral race, but more warlike than constructive.
I agree - there's nothing evil about them, and they wouldn't be good at being builders.
I suggest making the lizards like this:
1. Frogmen or Gnolls
2. Lizard Archers
3. Lizard Warriors or Gnoll Warriors
4. Raptors or Priests
5. Basilisks
6. Hydras
7. ???
In general, you could give the lizards Tyrannosaurs (as the 7th unit), but call them something else. And for the 1st unit, Gnolls.
Added 3 minutes later
And of course, we need mages! Priests are definitely needed! (You could try using Necromancers.)