1. Okay, assuming these Pokemon are capturable, how can it be "stealing" for either of these teams to catch them? No one should technically own them, so it isn't stealing, meaning they still aren't doing anything wrong. Unless, for some reason, someone in your game already has possession of Mew, Mewtwo, and EVERY DRAGON/FLYING POKEMON IN EXISTENCE . Even harnessing their power isn't really evil. And how do you harness the power of flying Pokemon by the way? That'd be sort of unnecessary, considering the existence of airplanes, helicopters, and other man-made forms of flight. And we've seen what happens when people try to harness the power of Mew and/or Mewtwo
2. No. The Sky is "space." It's the view of space from Earth. It's not a debate, it's a fact. When you look into the sky, you're just looking at space, but with our atmosphere placed between space and your view of it. You literally cannot have a civilization in the sky unless it's in space. Otherwise, if it wasn't in space, that civilization would still be within Earth's atmosphere and ecosystem. Really dude, think about that for a second. We're not "TECHNICALLY" right. We ARE right. How can you have a civilization in the sky that ISN'T in space? The Sun is in space. So are stars. Where do you SEE the Sun and stars? The sky. You are therefore looking into space when looking at the sky.
Last point of response: " In the Sky you can actually SEE things, in Space you cant unless you have equipment for it...so in a way they are different too." So at night, those aren't space stars. Those are sky stars. Right? ;;;
And in the day, that must be the sky Sun, not the space Sun. And when we can see planets from Earth with our naked eyes, those must be sky planets, not space planets, right? Okay then, gotcha. Glad we cleared that up...
I repeat, you need some major adjustments to these teams. They aren't evil, and their goals don't make sense. Like, at all. You still never answered how they'd manage to make a stable ecosystem by themselves in space. Humans can't fully develop a stable ecosystem, no normal Pokemon can manage it, and I dare them to try and boss ARCEUS around and force his hand into making a new PLANET for them.