Mogamett really can be so honest, straightforward and gentle after his own fashion because he doesn't consider non-magians humans anymore (or he doesn't consider magicians humans but something higher and humans are just animals). There's not a trace of doubt in him anymore. The same can't be true for the younger folks who haven't gone through what he did. Thus they won't be as genuine, and in the end they can go either way: Adopt the racist way of thinking as an ideology or they can keep doubting it. The latter people might find living in Magnostadt somewhat haunting, even if they pretended otherwise.
Titus's situation looks worse than I thought. It's clear his past was bad, but now it seems he has no future at all. I doubt Mogamett foresaw this when giving the human pet to Titus, but it couldn't have been better luck for him. It was Marga who made Titus want to defy his destiny, leading to betraying Scheherazade. Who knows what he is, in the end. Maybe he's a non-magician altered by Scheherazade to become a really powerful magician at the cost of his life? We don't really know if Scheherazade is any good, after all.
I still hope Al Thamen doesn't have too much to do with Magnostadt, at least in the form of direct influence. It would be strange if they totally ignored such a nest of magicians, but I want Magnostadt to be standing on its own.