May I add that there would not have been Crono and co to help Ayla out =.= Also, the fact that people like Kino were said to have been time travelling to get to where they got, since the future of the Reptite Dimension (or a world where Lavos never lands) would not have humans, Kino would be missing and Ayla may have lead a different path, and fought and lost.
Remember, The Reptites are already thousands, maybe even millions of years advanced than the "apes", who seem to have recently emerged from the trees.
In the Reptite Dimension, humans do not exist as they were wiped out, and the Reptites were able to get closer to the planet, and the planet hence let them harness it's power, putting it into the Dragon God.
Now, The planet in CC is a selfish little skanky one. It uses it's own beings, no matter who dies or doesn't to save itself. Look at the little bitch, taking out Dinopolis (and it's obvious that it did it with conscious) from it's own dimension and their own Dragon God (the power of the planet) and allowing them to get slaughtered by FATE, the protector of humanity, while at the same time the planet hates them. But yet again, this is also after the humans did a favour for it. So the planet is very contradictory.
Now, as for the Frozen Flame. The Frozen Flame is a part of Lavos that came off during impact with the Earth.
The Flame WAS inside the Mammon Machine, RD makes this very clear and RD had the same past as CT. Also, Belthasar stated it's existance in one of his secret rooms. He called it the "red shard". Dreamstone is not a shard of anything as it is a reoccuring mineral, found long long ago. The Frozen Flame is a shard tho. Belthasar also said that with this, love and hate were born. CC expands with this and explains it all. Upon contact with the flame, the humans were mutated and evolved unnaturally. Chronopolis and Terra Tower/Fort Dragonia state this very clearly, especially with the fact that humans are torn between love and hate.
And as for the Mammon Machine. It is made out of dreamstone, but inside it, what it sucks energy from is the Flame, and Schala communes with it. Placing the flame closer to Lavos would probably increase the link and hence more energy would be drained. Basically, the Mammon Machine just channals that destructive energy out and spreads it around, just like how the FF is contained in that huge ass machinery in Chronopolis.