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Think about what things can be involved in races, and what terms are associated with that

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When the timelines merged, did this come with?

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If you were in a race, you'd be in a good position.

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I'd say it may be a bit AQua.

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This is perfect for you if you prefer to break down the images.

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Apparently it talks too!

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UPDATED GUESS

- An item from AQ - It has 'a head' - You can use hammers to break things down quite literally - It is blue - I have no idea if it can talk

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It is NOT in The Span or related areas

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My answer.
When the timelines merged, did this come with? - The Dreadspace final cutscene talks about our role as the Eternal Dragon of Time.
If you were in a race, you'd be in a good position. - It's a helm, and thus, a head, and being ahead is a good position for a race.
I'd say it may be a bit AQua. - Trobbles originated in AQ.
This is perfect for you if you prefer to break down the images. - ???
Apparently it talks too! - There is a Trobble (NPC) in /deathpitarena, which has "dialogue".

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My answer.
Hanging out at festivals or worshipping the orchestra are likely places to find me. - Found in the music festival storyline, /palooza and /orchestra.
The hair is totally real! - Refers to the obvious wig totally real hair.
I may be willing to come with you on your journeys, if you can convince me. - He drops a pet version of himself.
(WAM!) - Short for Wolfgang Amadeus Mozart, the real-life composer that Mozard is based on.

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Riddle Answer The Black and white to unlock the door may refer to the fact that you need to have J6's Secret Hideout Map and that drops from the sketchy dragon which is black and white. The second part refers to a recipe and the name in the last is the name of one NPC at /saloon who wants a recipe. I suppose the recipe is a common item. So, it makes sense to me.

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My answer

You can go 30 or you can go ten by three, the choice is with thee. - There are two ways to obtain this winged cape, 1 and 2. For method 1, you can farm 30 Infernal Tokens. My picture was of method 2, which requires rank 3 Dreadfire and 10K gold.

Centuries before the Necropolis, a quarter was ruled. - Item description says there "was a vampire that ruled a quarter of Doomwood Forest five hundred years before the founding of Necropolis".

The ruler likely inspired dread, maybe even from Celestials. - This item is associated with the Infernal Army, which is viewed as the antagonists of the Celestial Beings.

Once there was great power, but it has flown away. - It's wings from a now-dead, but powerful vampire.

In new-to-you condition! - Not sure exactly what S.Hunt may have been referring to here. Maybe this clue distinguishes if it's the first or second version of the wings. In which case, version 2 is newer than version 1.

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Silver Victory Blade

You get what you take, which in this case is nothing.
The item is free to get from the merge shop.

You might feel Legendary when you've got this, but you don't have to be.
This item has the Legendary rarity.

You won't have to journey far to find this, but you might to make it mightier.
The item can be found in the second room /battleon, the spawn location. However, you have to travel to the Graveyard in order to complete quests to merge upgraded version of this item.

First place, second place, third place… we're all winners here!
You are able to to upgrade the blade three times.

Questing and merging, so many options!
You must quest and merge in order to upgrade the blade into many different blades, with two different themes. There is the Enchanted Victory Blade, and then the Enchanted Mana Blade and the Arcane Blade of Glory on the good side, and the Enchanted Shadow Blade and the Shadow Blade of Despair on the evil side.

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Easy DragonBallZ reference there. So I'm 9000% sure it's either 1/ 2/ 3/ 4, 5 or 6. I don't play Street Fighter so I can't spot a street fighter reference. If there is, then it's 1/2/3/4. If not, it's 5 or 6. Thinking either it's the helm, since it can't be black (non-Saiyan mode), or 6, since you turn it in for a quest.

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My answer.

In case it is unclear, I am referring to this.

- You cannot purchase this item and instead have to merge items inside a Dreadspace Replicator
- You collect 'Space Dragon Balls', a reference to Dragon Ball Z, and it takes an eternity to actually farm for enough balls to turn in for scrap metal which is then merged
- The house is completely black
- I have some ideas about the 'glory' line but they're too vague to mention - perhaps it refers to the scrap metal?

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Can you count your ABCs? Better be ready to draw your weapon at a moment's notice. I don't think you'll be using this to eat, but you can sure try if you want to. Just make sure it's not too grimey.

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A Somewhat Dumb Answer Counting your ABCs may have something to do with school even if it makes no sense. And something we use in school is a pencil. Perhaps more than one, if we're counting them. The draw your weapon part of this riddle is part of the description of what I've linked. The next part is where I have no confidence in my reasoning but I guess you could use two pencils to eat if you use them as chopsticks, but that doesn't seem to sanitary. And this brings me to the last part about it not being too grimey. Wouldn't want to use dirty utensils even if they're not meant for eating. Unfortunately I don't have access to what I chose as my answer.

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My first guess.
Can you count your ABCs? - Alphabet soup.
Better be ready to draw your weapon at a moment's notice. - A spoon is not a very good weapon.
I don't think you'll be using this to eat, but you can sure try if you want to. - Have you ever tried eating with a stirring spoon? They're too thick and don't hold enough material to justify using.
Just make sure it's not too grimey. - Got to clean the spoon.

My second and much better guess.
Can you count your ABCs? - Find in battleground a/b/c/d/e/f (and honorhall).
Better be ready to draw your weapon at a moment's notice. - It's a sheathed weapon, so you would have to draw it in order to use it.
I don't think you'll be using this to eat, but you can sure try if you want to. - Item description references "knives" and "meals".
Just make sure it's not too grimey. - You merge rime tokens to get it.

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You're getting really good at doing these.

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Due to the fact that whatever the answer is needs to be submitted by a in-game screenshot (and thus accessible completely f2p players), it can't be a members-only accessible, rare, special offer, seasonal item etc.