Nah, she didn't forget it. She just doesn't want people to freak out from seing a draconic face. I have a fealing that her hood will fall off by accident.
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Ya know, that actually sounds like a preaty decent way to reveal it. An epic battle in Courthas, Yugiri and her Shinobi fighting along the Scions and Knights of the Holy See, THEN in the midst of battle Yugiri is injured by taking a blow for a cerin Ishgaurdian we've met and in the prosses her hood falls back to revale a Draconian (Yet Beautiful) face beneath it to the Ishgaurdian Knight who atempts to save her (the verry commoner turned Knight commander we meet in 2.4's story) and despite his shock (And that of his subordenents) he throws caution, sanity, and the very teachings of the holy see to the wind to avenge her. (Though do to here iLvl 800 plot armor she'll live and be the start of Ishgaurd's change that will lead to Heavensward's main plot and the opening of the Gates to the out side)
That's probably the only way. Earlier I would have given a chance to the possibility that she removes her hood to intimidate someone with her draconic features, but taking into account the unnatural beauty of the Au Ra I hardly think that would still be possible.
Perhaps they could have a separate starting city for the first few levels, but not for long enough to help the story issues any.
We're already divided into different cities for the first 15 levels, but even that much is a recurring issue in the New Player forum. Players who join to play with their friends want to be able to actually play with their friends. Currently, complaints about being separated for the first few levels can be countered by pointing out that once you reach level 15 you'll be able to go anywhere and the storylines will all merge at that point, so past that you can play with whomever you want. But that reassurance only works (or in some cases works) because level 15 is a pretty quick and easy threshold to meet.
It certainly wouldn't work to say that because someone wants to play a Miqo'te, they can't play with their Au Ra friend until after they level from 1 to 50 and play through all the story content through 2.5. (And that's not to mention the fact that that would require an equivalent amount of Au Ra specific content on the other side of that barrier, effectively doubling the size of the game before even reaching the new content that extends rather than parallels the story.)
The problem aren't starting cities but Ishgard related quests and Yugiri's quests.