My initial starts were pretty terrible, I had to turn the AI down to easy to stand a chance. After a couple of losses today to a human player, I realized that my flaw was not expanding fast enough.
Now that I have that, I gave the "Default AI" a try. I was used to the AI being dim and not really using skills. They are not, with the default setting. The AI cheerfully Crippled, Charmed, and Polymorphed my units every chance they got, and even though I controlled 3/4 of the bases, it certainly wasn't rolling over and dying.
One of them I seized just for the bonus resources. The enemy was more focused on the other side of the map so I only put a couple of token defenses, a ground and mortar turret. I watched the AI creep a Devastator up, supported by a half-dozen Shamans (one of which cast a shield around it), and start shelling the mortar turret - not a bad strategy at all.
That was just my first taste of the Normal AI, and I can't wait to see what else it has in store for me.
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All three of the Dragons seem to have the Aura of Restoration passive skill, but the Zephyr seems to have at least two more: Rejuvenation, and one other that makes a reddish-yellow ball of fire appear over nearby enemy units Aura of Frailty, maybe? Do all the Dragons have three passive skills? I'm not sure what the other two are for the other two Dragon types.