You'll have to "unlock" your dragon form and all the perks that come with being a dragon knight (there's more than just being able to transform in a dragon but more about that later). Your first taste of what it feels like to be a dragon is on average after a couple of hours (depending on how you play) but the real unlocking happens after you've already done some questing.
The approach in general has been that ennvironment/antagonists/story/scripting nudge you in the direction of "use dragon"/"use human"/"use both", so yes, there are things in there which you wouldn't want to handle in a human form.
Thanks for the info
It's my impression that many RPGs become either a bit boring or a bit unfair at high power levels, so I'm looking forward to see which challenges you've come up with for the dragon