User blog comment:TheWickedWizardOfOz/Battle of Fairy Tail/@comment-7418318-20150104204812

Nice observation on Natsu being asleep. That might also explain why Igneel got angry at Grandeeney. He might have been concerned about Natsu or Wendy waking up and discovering the truth.

With the Dragon King Festival I think it's more likely that King Toma was mistaken and that the Dragon Invasion during the GMG arc was not the actual Festival. He probably misinterpreted some old text or prophecy.

After all the text spoke not just of Dragons and Humans doing battle, but also of Demons and there were no real Demons battling in the Dragon Invasion (despite her magic I'm sure that Mirajane still counts as Human). But now in the Tartarus arc we have all three species present, Human, Dragon and Demon.