Haven't finished the game yet (right before baal; haven't done flying fortresses) but the dragon feels pretty darn weak. For one thing, enemies on the ground just disappear when you are in dragon form. Other aerial enemies (wyverns & stupid goblin flyers) seem to be almost as deadly as the dragon. I end up hitting the homing fireball, waiting for cooldown and doing it again over & over whilst flying in circles. The perspective also needs work - the dragon appears to be very small with the over-the-shoulder view.
Next time around, I would like to see more physics fx from stuff destroyed by the dragon's fire as well as enemies on the ground (also let the player see how strong they are when on the ground). I mean Lovis killed 10k Black Rings but all i've been doing is shooting down crappy ballistas and goblin mounted wyverns. There needs to be more visual feedback on the destruction as well as a REAL difference in power.