Did you, like, gloss over the dude with the berries entirely? Invrisil is, for sure, one of the biggest and most profitable markets in hundreds and hundreds of miles. Considering the degree of trade most powerful nobles seem to engage in rather than being mostly self-sustained, either their tax revenue from any number of their people that do trade with it gets reduced, or the nobles’ own trade has to bend the knee.

If they were already trading with you, it is because you were their best option. Take that away, and they will have losses. How many nobles can find a marker sufficiently big to accept the same volume of trade, with no loss of profit, and hopefully as close or closer so that they don’t have to spend more in less safe transportation? How many places are as prosperous and as safe to transit as Invrisil and its surroundings? And if you relied on some of their own products, like alchemical goods or artificier services, some of the best in the entire continent too, well…

I also have no clue why you assume this would collapse its economy.

Between the feast Laken had and him arriving at Liscor, only about 2-3 weeks had passed. Tyrion gave a timetable of 14 days when he was talking to Pellmia, and it was only a few days between the feast and Tyrion getting to Riverfarm. Their “force march across the continent” did not take all that long.

Assuming the rains in Liscor marked the beginning of spring, they were noted to only last around 1.5-2 months, not the entirety of spring.

At the very least, there should around another month of spring remaining, give or take. Depending on whether the summer solstice is the start of summer, or more midsummer, we could thus have a while to go until that event.

You are missing a couple key points:

This village was not at a big crossroads, or even on the main roads, but was relatively out of the way. They don’t get many travelers, which are the lifeblood on an inn. This means most of the money keeping the inn afloat is coming only from the villagers themselves. They are basically consolidating all of their money into that single enterprise. The inn will get richer, while the rest of the village gets poorer and poorer… until the village can no longer support the inn, because the villagers don’t have any more money. That inn is not only mostly useless, but is actively detrimental to the village.

Even if the money wouldn’t have fixed up all of the flood damage, it appears like almost none of the damage was fixed. Which means even if they have a shiny new inn, all of the villagers’ homes are still in disrepair. And with no money coming in to fix them, that damage will only grow worse. That is not only bad due to the damage itself, but for secondary effects – lots of mold bringing health issues, poor health causes other diseases, etc.

Fixing the river itself is also an incorrect point. You can fix a river from flooding as much without damaging the ecosystem considerably. Making the banks a foot or three higher on one side of the river by hiring a bunch of laborers means the river would nominally only flood the opposite side, if it occurred again. This isn’t going to destroy the river, or stop them from fishing, or ruin their industry. At worst, they’d have to maybe rebuild a few docks (which might very well need repair anyway).

As for your point about another in getting “significant funds” after being destroyed: the Wandering Inn got funding due to it being used in defense of the city. It wasn’t just arbitrarily handed money for no reason. The rest of Liscor also needed repair. But the big difference between the two situations is the Liscor had the money to do all of those repairs as well. They have the budget to allocate funds for repairing the inn, perform all the other necessary repairs, and they are actually a trading hub with a decent number of travelers to sustain such businesses.

Had Talizmet built their inn and repaired houses and such, Magnolia would likely have been fine. But they didn’t. They spent the money on something nearly entirely useless for their location and predicament, something that might well destroy the town outright in the future.

That would likely be harder than would be possibly for all the current queens on Izril. They barely have enough skill to create inferior mishmashes of forms they had on Rhir. It was noted that even a slight change in musculature could throw off the entire system of a worker or soldier.

Even if they managed this, any form they created would still like need an exoskeleton, rather than any sort of flesh/scales/fur of other races. I imagine the drakes, at the very least would also be very, very angry at the Antinium trying to copy their forms.

The Earthers Magnolia got a hold of were all quite young, probably all around 15-16, maybe younger for a couple of them. The ones in Rhir seemed to be a decent bit older, probably more around 18-19 on average. Doesn’t sound like much, but those couple of years can be a huge difference in maturity level. Plus, the Blighted King didn’t just pamper them for weeks, he sent them out on that first disastrous patrol after only like a day or two.

Also that mention of Teriarch reminds me, it’s been a while since we’ve seen him, I wonder what he’s up to.

The old women gave Magnolia a frown, and them a smile that smoothed the lines on her face.

I believe this is supposed to be:
frown, and [then] a smile