I don't want to spoil this but you have a few problems........
1- Dragons have scales over their skin, dragon scales are almost impenetrable. You might as well be shooting at a 50' solid titanium cube with a rubber band. THe only way to kill a dragon is to shoot it in the lower neck where the heart is. But it has scales there too, so you have to hit it when it rears it's head back in preparation to torch it's enemy, when it's head goes back it's scales will lift up a bit and the arrow can and get in under them.
2- In your latest faction tree, you have a magician morphing into a dragon........
3- In most mythology, Humans are food, not workers.......
4- Drakes world work the forge, not dragons.........
@Gabbe: Dragons aren't "it"s, they're he's and she's.
I do find this very interesting though, and may do a little animation for it if you ask really politely.
Now that business is over-with, welcome to the forums!