We finally have visual of what the first game concept of what Spyro's Kingdom looked like.[link]
Apparently, this game was originally going to be a MMORPG, in the Legend of Spyro-themed universe. The Portal of Power is mentioned, and we were going to have to use toys to play as our dragon characters in the game world. And just like Spyro's Universe, we customize our lairs. This game idea was proposed to Activision, but it was rejected.
Link to video of demo watched and played by deviant, bionicle2809: [link]