The whole game is underleveled...
If a lvl 5ish red dragon isn't underleveling, what is?
My guess is that the dragon gets whatever the max level they managed to work up to in the main game version. I seem to recall it was level 10 last patch, but I didn't take screenshots, so I am not completely sure.
I like the Underdark myself, simply because I prefer more "otherworldly" environments in games, like Morrowind. As for the enemy levels, I agree they are too low, hopefully they will get bumped up in the final version, considering the party could be level 5+ by then.
