The Dragon is a lightly armored tank that covers the battlefield with incendiary rockets, in a checkered strike attack.
Instead of doing damage, the incendiary rockets are based and apply a Damage-over-Time. This attack consumes all its ammo and unlike the other vehicles, the Dragon has a prep-time before it can attack. Also unlike the other rocket-based vehicles, the base damage is less than even the Rocket Truck, but makes up for it with a modest Damage-over-Time, which isn't guaranteed.
As of the 2.2 Patch, this is the first unit that requires one of the higher-tier resources to be built, Widgets. However, at this level, Widgets will not be in plentiful supply as in higher levels.
Like most other units that use flame for damage the Dragon may seem slightly underpowered for its costs. That doesn't mean it isn't useful though, it can still do a lot of damage if the fire DoT is successful. If it is used along with a poison unit such as Heavy Chemical Tank, most enemy formations can be defeated with ease.
This unit is basically an armored Rocket Truck with a DoT effect.