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 PCs come across a town with a strange curse: Every morning, those who have grown up here wake up with the memories of someone else. They do not find this strange and have no idea it is happening. They calmly wake up and start these new lives as though they have always been that way.
The cause: A wizard who lived there was spurned by a maiden he was infatuated with. His attempt to manipulate her memories into believing they were already together and that she loved him went horribly awry.