Yeah, drakan allowed you to walk around as a dragon on the ground and attack ground troups. It didn't make the game too easy as Arokh the dragon was quite easy to kill. 3 or 4 hits from a lowly orc and he was dead. They balanced it out by having human only areas. It actually seemed more realistic; as powerful as a dragon is, 4 hits in the neck / chest with a war axe wouldn't do the dragon (of Arokh's size) any good at all. He does not wear armour and have hard scales on his underside.
Divinity 2 didn't have the ability to attack ground troups due to technical issues but Larian said they planned to / originally had it in the game.
