About the appearance of the dragons(if you transform in the dragon, not as a mount): I think that it should resemble your 'reputation' a bit. Like an evil character would change in a Black Dragon with little holes in its wings(like Illidan in Warcraft 3:TFT), and Paladin-like charactes maybe some sort of Golden Dragon with some sort of shining aura, or make it completly adjustable, like when you get the 'skill' to change into a dragon, be able to choose how it looks: its colour, its wings, its size, type of head, maybe with some attributes like strength, speed, intelligence. Strength would increase the damage, Speed would increase the dragons maximum Flying/Turning speed, Intelligence increasing manapool so the dragon can cast more magical attacks(maybe something like 'Firestorm' so that a whole area is set on fire, or 'Devour', picking up an enemy and slowly devour him while you regain health)
If the dragon would be a mount, i think it would be cool to first get some sort of egg that hatches, and after that it grows in physical size every time it levels up, and at a certain point it would be big enough to actually mount it so you can fly with it.
If there would be henchman/partymembers, how would they follow you if you mounted a flying creature/changed into a dragon? would they also have flying mounts/Dragon Form? Or does this mean there will be no party members?
And if you would be able to change into a dragon, it would also afect the 'map-system'. Like if you use these 'gates', how are you going to make the borders inpassable, as mountains or trees can no longer limit a flying creature, it just needs to fly higher to get over them.

I like both the ideas, I always enjoy having pets <img src="/ubbthreads/images/graemlins/smile.gif" alt="" />
But I guess it would be cooler to transform into the dragons ourselves.
Make us able to make baby dragons <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" />
maybe the flying over the mountain (or forrest) would be the area with little to no gameplay to stream out one level and stream in the next. We have been told we would get the feeling it would be one big seamless world. (or did I get it wrong ?)
But well pets haven't really come to the discussion, who would want to be able to have pets and who wouldn't ?
I would like them, but there are other things far more important to me than being able to have pets. (A fighting system I like for example, or the option to play peacefull, but since we are going to be dragons peacefull is out of the question)
But basicly pets are like party members. And I wouldn't want everyone to just being able to change into a dragon (so the party members/henchman shouldn't be able to do that) and I would leave them behind <img src="/ubbthreads/images/graemlins/smile.gif" alt="" />. because I don't want to have a party all the time.

There is no spoon !