This is an example of why reusing a name with so much lore baggage is so problematic The why takes some history & lore to set the stage though.I don't know, the Big Eberron Tiamat story would probably involve her followers springing her from cosmic prison so she can boss around dragons and try to take over the world. Sounds vaguely familiar......
Evil deity vs. archfiend: 6 of 1, half dozen of the other.
The Dragons of eberron are not like the beasts of FR & Greyhawk... Rather they are the closest thing eberron has to gods & control epic magic, one example of that magic was cursing the entire continent of xendriik 40,000+ years ago & that curse still remains. While extremely long lived, Dragons are still mortal beings with free will. During the Age of Demons, the dragons were losing badly to the overlords. One of those overlords is the evil that lurks in the heart of every dragon made flesh. It had the power to grow that prideful evil & corrupt dragons that fell prey to her influence. Unfortunately, Dragons of Eberron makes a lot of references to the FR style for various things including while talking about Tiamat. Since then, The Dragons have been concerned with understanding & guiding The Draconic Prophecy.
Because there is an overlord specifically geared towards corrupting them, they try to hold back while quietly manipulating things in the background by proxies. If things get bad enough for The Dragons to get involved, they might go full Vorlon & do the equivalent o solving the mouse problem in your house by dropping Tsar Bomba on your house. One of the credible possible causes for The Day of Mourning & destruction of the entire nation of Cyre is that The Last war was heading towards possibly influencing The Prophecy in negative ways if the war continued. Destroying an entire nation & most of the citizens there was a perfectly effective solution to avoiding those eventualities.
Yes she is listed as one of the gods in the Dragon's pantheon in that book, but she's not a god & got placed there in hopes that it would keep her away to turn her attention elsewhere.
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