Hi every one!
If the dragons are too strong, I think they should go nuts and out of control if the player abuse of them, or if there are not enough arch-mages to control them! (it was my little idea of the day because in my head, with magic or not, a dragon will always need a master who can control him).
I didn't tried the 2nd version yet and I'm using the 1.2.1.2 version on ubuntu 3.10 and it works really well, and as it was said before, I think that the techs are stronger at the beginning but the dragons can really kick their ass!
Actually, its quiete balanced but it depends on the player and the way he rules his faction.