The Council system of government with the differing species represented (bar the sprites) is also seen as more democratic than anything the realm has had before.
The one exception is the sprite community and it is generally accepted that short of obliteration of them there is not much that can be done.
The obliteration option is suggested regularly but the Queen rebuffs it partly because she can be merciful but also she sees the sprites as a living reminder the magical world is not a nice one, it is dangerous and too much power in one species is not a good thing.
The Palace grounds have been cultivated but there are plenty of wild areas in the countryside, which Fresdian loves. She, like the Queen, does not think everything should be tamed.
Wild areas are needed as a habitat for certain creatures but also as a living, visual reminder magic is a wild force and can't be entirely tamed.