I wrote a longer response to Cal's last statement
here but to shortly recap here, the current state of the event is as follows;
1.) Meer Reputation is gained by killing Bane, which also pushes Ophidian reputation higher now too.
2.) Bane Reputation is gained by killing Meer.
3.) Only the Bane have a camp, and it's stationary. There is a Recruiter inside who will take 20 Power Crystals for Blackrock Stew. The Ophidians now sell you the potions for just over 1k, if you have the reputation. The Meer so far neither have a camp nor sell anything.
4.) We're supposed to be being "humble", but no one knows how to do this. We've also been chided for "falling in line with the easiest route to get the spoils of the game."... which may end up dooming Magincia.
5.) The stolen Crystal from Castle British's throne room has something to do with the event too, but we couldn't prevent it being taken, so now all we can do is wait.
I personally am not turning in Power Crystals... even ones taken from Blackthorn minions, to feed my Bane Dragon, which is ironically owned by someone with full Ophidian reputation who went and tamed it as he would any other Evil Karma creature like a Nightmare. As the event stands though, that and killing more Bane is the only option left to resist supporting the villains apparent of this event.
And even my character with Bane Reputation isn't touching the Meer (he doesn't like Ophidians because of the invasion, but he draws the line at killing the true innocents) ... but frankly, the whole thing at this present point is just pointless and frustrating.