[Raynor]

Originally Posted by Mänwë

However I do not see how this could mean that the Elves were anything less than the "Firstborn".

In my opinion, the shortening of the period [between the awakening of elves (1050 Valarian year, cf. the Grey Annals, HoME XI) and the awakening of Men (1500 Valarian Year) from 3980 normal years to a "meager" 702 normal years] is quite significant.

Another possible source for orcs is found in the Grey Annals too:

Originally Posted by Valarian Year 1330

Among these were the Orkor indeed, who after wrought ruin in Beleriand; but they were yet few and wary and did but smell out the ways of the land, awaiting the return of their Lord. Whence they came, or what they were, the Elves knew not then, deeming them to be Avari, maybe, that had become evil and savage in the wild. In which they guessed all too near, it is said.

Though this guess may just be an approximation of the marring of elves by Melkor, in accordance with your C-1 version (btw, that was some neat essay!).

There is also a quote I remember reading that states something about Melkor appearing in fair form to Men.

I believe you are reffering to the Atrabeth:

Then one appeared among us, in our own form visible, but greater and more beautiful; and he said that he had come out of pity.

- Ye should not have been left alone and uninstructed, he said. The world is full of marvellous riches which knowledge can unlock. Ye could have food more abundant and more delicious than the poor things that ye now eat. Ye could have dwellings of ease, in which ye could keep light and shut out the night. Ye could be clad even as I.

Then we looked and lo! he was clad in raiment that shone like silver and gold, and he had a crown on his head, and gems in his hair.

Originally Posted by Gil-galad

he made dragons as a mockery of the eagles.

Hm, the first dragons were wingless; the winged ones appeared only in the war of wrath, when it was too late anyway and the eagles beat them into submission. According to BoLT, the first dragons were "created" by Melkor at the advice of Meglin, to overcome Gondolin.