This continues to be a great story. Harry's instinctive trust in the goblins is understandable. They've never screwed him over. The over-powered cleansing ritual is rather to be expected, given Harry's potential power, if not for the specific reasons you have stated, then for similiar ones. I loved what it did to Voldy&Co
I really like that you have the goblins give 'true smiles' with all their teeth showing. I know most authors have the 'showing of teeth' to a goblin as either a threat or extreme discourtesy, but I've always felt that while Goblins practice deception, that's only as part of their business, or to protect their race. With those they honor, I can only imagine that their attitudes reflect their personal integrity. They're sort of like the Ferengi. They live by a strict moral code, albiet one that most people don't agree with, or even understand, and follow it assiduously.
After all, One does not maintain control of the entire wizarding world's money by dirty dealing. I usually feel that I cannot trust someone who smiles without showing his teeth, it's concealing, so when I write about the goblins, I have them do so as well. (Does that make any sense at all?)
Anyway, as before, I eagerly await the next installmnt of 'Goblin Conspiracy' Alorkin