Well, in the 1E Forgotten Realms Boxed Set they added another two ages of Dragon. So you could have had a 111 hp Large Red dragon.
I think the goal of 2E/3E (as I recall stated at the time) was to make dragons the most powerful (or thereabouts) creatures in the game. So it made sense for some degree of inflation in their case.
True. Comparing Titans and Dragon in the 1E AD&D Monster Manual definitely made dragons look relatively weak on the absolute power scale. So some degree of improvement on this point likely made sense. AD&D 1E suffered from the organic evolution over time -- the whole level structure wasn't thought out as creatures were added. One very good thing 2E was able to do was to rescale things from the ground up.
The problem with that approach is that they folded epic into core, but again this just becomes epic in name. The end of the 'core' game should be the beginning of the epic game. Things like Ancient Dragons, Balors and Tarrasques should be foes encountered at the end of the Paragon Tier. By comparison, the epic tier should be Dragon Gods, Demon Princes and Godzilla. But the epic tier skips such foes until the very end.
I think they'd have been better off changing the way that the game plays completely. Focus on influence in arenas where direct intervention is difficult. That way you don't have PCs killing Orcus and Bane (upsetting the cosmology). It also would give epic a very different feel, which is a massive plus.
Also, since the Lord of the Rings (movie), the Balor has clearly been increased to Huge size to parallel the Balrog.
I was thinking that what 4E does badly is sacrifices verisimilitude.
If we were to assign races a default level based on individual threat levels we might end up with something like:
COMMON
1. Goblin, Kobold
2. Hobgoblin, Bullywug
3. Orc, Lizardman
4. Gnoll, Sahuagin
5. Bugbear, Thri-Kreen
UNCOMMON
6. Derro
7. Duergar
8. Kuo-Toa
9. Drow
10. Yuan-Ti
PLANAR COMMON
11. Eladrin
12. Shadar-Kai
13. Githyanki
14. Rakshasa
15. Mind Flayer
So the bulk of Drow or Yuan-Ti encounters should be in and around high heroic/low paragon tier. Not high epic (as detailed in MM3).
That means there is a vast dearth of properly epic creatures and races in the epic tier. The Forsaken and Weavers spring to mind as making sense as epic races, but few others.
Agreed. If nothing else, it makes a lot of backstory harder to work with. If Drow are mostly epic level encounters then they should be interfering with Deities and not harassing elves (who, as a PC race, are of a completely different order of power).
There is a massive trade off in 4E to make the math work well (avoiding the low level opponents can never hit issues of 3E) that sacrifices something as scaling the creatures to the character level makes progression feel less like . . . progress, I guess.