I prefer the third option - created by the gods.
I don't worry a lot about evolution or scientific advancements playing/running an AD&D game. Now that is not to say that I don't like rule systems to explain the physical world - I just don't think those systems need reflect this world's systems.
Not so much about mermaids or minotaurs, etc, but I'm concenerned that gnomes and Gond (in the Forgotten Realms) support technology and advancement, and yet conveniently the only time it appears is when it will help the story along. Why isn't there indoor plumbing? Why is steel only used for swords?
Just my two cents on why I like what I like.
NTW, hi Dinonykos! (And Uatu of course.
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