After a while I realized something a Professor told me about story writing. Writers put everything(EVERYTHING!) in a story for a reason: every noun to every adjective.
Since I wanted to know who the Pygmy is and since no one is giving a definite answer just more assumptions, I looked up the meaning of the word Pygmy. After reading its definition, I am satisfied now with who the Pygmy is.
From Dictionary.com (4th definition)
Pygmy
"a person who is of small importance, or who has some quality, attribute, etc., in very small measure."
If you think about it, this fits perfectly for the Pygmy. In Comparison to the other "gods" who found the Lord Souls, the Pygmy is unimportant or small. Hell the intro says hes forgotten. He's only quality of importance is that he found a Lord Soul and No one knew he did. (Furtive meaning thief or stealthy, etc..)
Again after a little thought, you can argue you are both the Pygmy and a Descendant.
I believe the Pygmy is 'Man'.
So my first thought, since you are a Human you would be a descendant of the Pygmy along with all other Humans. But Then if you created 'Man'. wouldn't that be important. My thought after that was maybe the Pygmy means 'Man'(or the Humans)? After all compared to the gods, Humans would be of little importance. So if the Pygmy did mean to stand for 'Man' then the character you play as (a Human or an undead) would be the Pygmy and a descendant in a way.
After all the Second ending is the Age of Man. (Right?)
I just wanna know some thoughts on this. and please be welcome to point anything out that will support or disprove this theory.
P.S I think the Story Writers did a great job with this game. Especially with leaving everything open and up to the players.