It was a combination of Dragons being rather powerful characters from the start, not really fitting into Star Wars setting (Only Dragon seen in movies for example were bones of a Krayt Dragon, and even then it was simply a background prop), and in many cases they were given sentience when they should have been non or semi sentient beings, or long-ago extinct.
Now, I know that there are characters who are powerful from the start instead of starting from the bottom of the food chain as I believe they should (And I am not speaking of transfer characters here, I mean new characters who are just powerful from the start) and there are other semi or non-sentient characters who were not affected by the ban, and there are characters who play species that should be extinct, like the Sith Purebloods.
While I cannot speak for the Staff Members (Us Factory Judges are not actually staff) I hope that the ban on dragons was only beginning, and that it will be loosened in the future from completely banning characters like that into restricting them much like we have restricted metals (For example requiring for Dragon characters to start out as hatchlings and document their growth through a series of training Past-RP threads). However, characters like the Celestials or Mnggal-Mnggal should very much be still banned and not touched with ten-foot pole, there's just too much room for things going terribly wrong with those.
That said, while you cannot write a Dragon character ICly, don't scrap them totally, the rule can always change, as I hope it will.
