Well, yes and no, Dave. About personal business, you're absolutely right. However, you got to take into account dragon culture. They are very big on passing down the traditions, laws, and history of dragonkind to the young in their entirety, which is why dragon eggs are given to a Great Dragon to raise, and the Great Dragon uses dragonspeech while the young dragons are still in the shell to start indoctrinating the dragons into dragon society. The whole reason everyone is pissed at Hestaby is because she is going against dragon tradition, afterall.
Also, the story as copied from the Earthdawn source I cited is from the Loremaster of the time, Vasdenjas, who had a fascination with the Young Races, and contributed several works to the Great Library of Throal. It also closely mirrored an account of the Great Hunter given in a tome about the Horrors by Icewing (aka Ghostwalker), so it is very likely that the account is accurate, as far as dragons know/believe.
That being said, it is still a creation story, the same as any other. Whether everything happened as the account goes or not is unknown.
