In the latest build, the
Twitch.tv stream recording, there was an anti-exploiting mechanic in place. It cost about 15 recruits to deploy each time you deployed as a Dragon, and since recruits are a shared resource pool that depletes and doesn't regenerate, going in and out of dragon form needlessly is just wasting resources.
The rate at which each faction gets population into their account is based on the number of recruitment centers they own. The overall population pool available is shared, but each player's finances are separate from the pool - a guy spamming into and out of dragon form will only drain his own account, not the remaining population available.
That simple system probably works well in multiplayer, but maybe it could be eased up on in single-player a bit. I'm not sure.