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.
The ruling family depends on some magical artifact or place to secure their right to rule. A monarch isn't considered legitimate until he or she has been "accepted" by the artifact or place, whatever that might entail. It is also possible that some one else, not of the ruling family, could be accepted as the legitimate heir... A fact which the monarchs would like to keep secret.