Magical forests are never a good place to sleep, especially seeing as much of the population is nocturnal. Firewood taken from the wrong tree can turn against its collectors, and a strangling onslaught of angry twigs and branches can be surprisingly severe and difficult to disentangle yourself from. Fires themselves attract enemies, and not only malevolent predators. Giant moths and gloomwings are tempted by the heat and light, but are often misunderstood.
As population increases, animal souls are promoted to human before they are spiritually advanced enough in terms of impulse control, etc.: this shouldn't have happened, but karmic progression is automatic, after all--it's a force of nature. But the 'animalization' of humankind bodes ill for civilization.
No doubt the same goes for elves, dwarves, and so on.