[sm0ke]

If the house was placed there before the policy was in place then that's fair enough. It can stay as it wasn't a rule at the time.
Its also a part of their Role-play being DragonKin so i guess that also makes it an OK thing.

It doesn't give them any real kind of an advantage so what does it matter?
Does it really need to be started as another topic of conversation?

It's kind of lame and an escape route if something ever gets decided to be added there rather a mount spawn or a monster spawn worth killing, Having a house to retaliate to with a guild door merely takes a click of a button in distance to get away.

Not to mention having a house in a dungeon is much cooler than in a public place, everyone knows this..

EDIT: Let me ask you something, if there was a monster that dropped 1 mil gold and respawned every second the person who farmed that would be entitled to keep it because there was no rule or policy about it? That policy thing doesn't really make sense it just shows favortism to a player..