I personally am ambivalent to the kobolds, I would rather not hunt them all down and kill them or anything, I see no reason to do so. UNLESS they keep attacking us and prove to be a menace to the road travelling population. I'm currently of the mind set to talk to the one we currently have sleeping and letting him go with a promise of don't come after us. Or else. Oghma is fairly benevolent, but patience isn't a virtue most of us have. And attacking my friends or hurting innocent travelers (Oghma guide them) tries that patience.