It's sort of ridiculous how easy even basic AA units can handle any dragon that doesn't have full mastery skills.
Did you forget to deck out your dragon or something? By the end of Chapter II your dragon should be able to take on almost anything, except maybe a pack of Imp Fighters.
No, I was updating them regularly, but by the end of Act II, I had unlocked all of them. Part of my problem was play style (i.e. it turns out there is a max range on fireballs), but having skills like Acid Breath, Devastation, Pillar of Fire, & Eye of the Patriarch really helped. When I hit smaller units then, the Acid DoT would finish them off for sure. Near the end of Act II, I am proud to say there was a battle that hinged on me using the Dragon well. But before then, a combination of human error & really low Dragon HP really made the Dragon more of a liability than an asset.
More to the point, the Dragon never had very much HP. Even all the talents related to survivability are just heals, resists and regens. It's been a few days, but I think the Dragon has like 2000 HP and a Juggernaut has nearly 4 times as many hit points at 7500.
But all this is side chatter. The generals are a good idea. I love the idea of specialized Corps Commanders whose talents are molded by your influence but they should be cheaper and more effective and you should be able to use more than 1 a turn.