After the Giants were defeated and driven underground, the mortals who had fought in the resistance and had done great deeds in the final battles alongside the gods were rewarded. The gods raised them, calling them up to the Forge of Creation to be soldiers and aides, immortal and incorporeal. These beings were called the Lords of the Sky, or the Aedai in the old Amii language.
They learned to use the power of the Forge to summon legendary creatures and reshape wonders and catastrophes from [sic] the world's past.
This is their power and at the same time their limit, as they can recreate mortal dreams but never their own wishes. That is one ability they have lost: they are not able to create themselves, not able to dream anymore. Powerful they may be. But they are also locked in a dreamless state of incorporeal immortality.
Soldiers of the gods they were called, but they were never put to use, never sent into battle. They just waited, for a thousand years, waited for the moment of their destiny to come. And while the gods remained passive and silent, they watched from the high realm of the Forge as the mortals prospered and squabbled.
The Skylords had one limit - that they could only recreate that which the mortals had dreamt about. This came from their very nature, that they were dreams themselves. After the Forge had given them and the powerful gods a victory over the giants, stories circulated of mortals that had done heroic deeds in the great battles. And whilst those mortals perished sooner or later, their stories lived on as immortal heroes that fought by the side of the gods. As such, they were, like the gods before them, created by the Forge.
The Skylords are torn and twisted by the powerful emotions that the legends have infused into them. And as they were created from dreams, they remained unable to dream themselves.