Nah... i think Azala is phisiologically very much like the other reptites. And look at the overgrown heads of the reptites... very human-like ^_^
I always thought like Krispin says, since i saw that scene in CC... what we see in CC is just a tale told by other people, while in CT we see the real thing. And Ayla is intelligent, and the people on Laruba is led by the wisest, something that is sign of intelligence.
About the indians: the real reason is that the English was not their language. The same way that the English (the reptite language?) was not the native language of the Iokans. Remember that Lavos is a Iokan word, that means "big fire". Actually, what seems is that the humans are slowly stopping to use their own language and adopting the language of the most evolved culture, the reptite culture. But when they see something astounding (like Lavos approaching the planet), they cannot help returning to their native language. And of course the would use the reptite language whenever you are present, since you are a stranger, and they would think it would be more likely if you knew the reptite language than the Iokan.
I don't know much about indian languages, but from what i know, at least in the central and southern american, languages were pretty evolved, looking like latin. Actually, historians have recorded that Spain abandoned the idea of making the indians learn Spanish, because it was hard for them, but instead, they learned Latin pretty quickly, becoming even more proficient at it than Spaniards (for people in doubt about this, the indians were only forced to learn Spanish when the colonies became independent).
For godness sake!!!
Ayla has no tail!!!
It's part of her clothing!!! ^_- i would love that they showed Ayla clotheless to prove this point