Even for the 1st battle after killing laiken, there shouldnt be much problem in dragon form.
I disagree.
When you get to change into a dragon you are thrown right into a very hectic battle complete with instant death force fields. You have to try and get used to your character now flying and the new skills very quickly.
Apart from the short dream sequence way back in the game where you controlled yourself as a dragon, you get no training in fighting as a dragon.
Unlike the start of the game where you can spend as much time as you like trying melee, ranged and magic attacks.