Imaculata
Hero
I like that approach. I had previously thought it was overkill, but hell, might as well go whole hog!
I think with this approach the real danger to the players is not the overkill amount of damage, but the amount of tiles that are set on fire. If there's fire literally anywhere you go, that's constant 1d10 damage every round. That I think is the real terror, everything's on fire! 1d10 may not seem much, but that is a lot of damage if you take it every round on top of that ever else the dragon is doing. And you need to stop what you are doing to put it out, after which you could easily catch fire again.
You can also play the dragon in such a way that it is trying to drive players into the fire, so they have nowhere else to go. Dragons want to be in the air as much as possible, safely out of reach of pointy things, while spraying fire everywhere. The players will have a pretty hard time getting into a good position to attack the dragon, when the dragon constantly sets fire to those positions.
It kind of reminds me of a boss battle I once designed with a giant Forge Golem. The construct would poor molten metal everywhere, thus also controlling the battlefield, and limiting where the players could stand. It was pretty epic because of the constantly shrinking space.
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