Thanks for all the advice, all.
But it seems to me that it would make a fun subplot, it doesn't wreck suspension of disbelief, it doesn't overpower the characters (you said yourself that it's much less powerful than them), and you can get a great moment out of it -- the moment that little Trogdor saves them from certain death, proving that they've finally won his loyalty and trust.
If it makes everyone have more fun in the game, why not go for it?
I can see how it will be fun, and I might let them try it, at least for a little while.
Realistically speaking, though, I think no good will come of it, since the dragon is inherently evil and most of the party is good-aligned. Also, I figure it will try to escape by any means neccessary. Heck, I would. As Laslo said:
Someone pointed it out above, but a dragon is not an animal. It is a fully sentient creature who, as a child, is as smart as the average human, and it's just going to get smarter.
Keeping it against it's will is slavery.
The party breakdown looks like this:
The CG ranger/wizard wants to keep it for a pet. He speaks draconic, and its definitely in character for him to show interest in the little beasty.
The CN Sorcerer thinks it dangerous, and I guess offensive, to keep a dragon in captivity.
The NG elven druid is against the whole idea. She believes there will be dire consequences.
The CG halfing rogue is afraid of it and wants nothing to do with it.
The N ranger/barbarian is the one who wants to sell it.
Basically, its 2 vs. three. Keeping the dragon bottled up is a task that falls on the two rangers, and I think the druid will eventually refuse to cast her Endure Elements spell.
Having Cal trick the PCs is a cool idea. So is the plot hook. Hmmm.
I was planning on putting them through Forge of Fury next....maybe I could change the color of a certain beasty at the end to white. Hmmm. Think, pooh bear. Think...think...think....