I'm not talking about stripping levels here. As I stated earlier, I am against punishing the player for choosing one option or the other. What the paladin did was not very noble, but in my opinion, not punishable to the point of considering his oath as a paladin broken.
The dragon's CR is really not relevant to this particular situation.
What this boils down to, is a couple of questions:
-Should a DM throw his player into an unwinnable battle against such a tough opponent?
-Should the DM offer such a cruel ultimatum as a way to survive?
-Should the DM punish the player for choosing to live to fight another day? (but abandon the npc in the process)
In regards to the first question, I don't think every fight needs to be fair. Provided the risk is properly foreshadowed. As I have often mentioned in other threads, foreshadowing is what it is all about. I run a sandbox campaign in which the players can wander into a high level area. If the players decide to fight a dragon, they should expect that their death is a possibility. I would make sure the players are well aware of the danger they are putting themselves into.
In regards to the second question, I think a DM should play the creature in a way that is in line with its character. Dragons are characters too, and a cruel evil dragon would totally present such an ultimatum to the players. I think that is good roleplaying.
And finally, should the DM punish the player? I don't think so, but I do believe the choice should have consequences. Paladins are often expected to be noble and courageous. Sacrificing the npc to the evil dragon is wrong in my book. I understand why the player made his choice, but I think other characters would not agree with his action.
Dragons by their very definition are tough, deadly opponents. I don't believe a DM should shield his players when he introduces such a powerful opponent into his campaign. Whether the dragon is a right opponent for players of that level is a different matter.
"Dragons by their very definition are tough, deadly opponents. I don't believe a DM should shield his players when he introduces such a powerful opponent into his campaign. Whether the dragon is a right opponent for players of that level is a different matter."
To me the point is that in 5e MM some dragons have a lot more going on than the engine of destruction thing- some specifically aim for corruption and decay. So, while your dragons may go the one way, there are plenty of other ways.
"Should a DM throw his player into an unwinnable battle against such a tough opponent?
-Should the DM offer such a cruel ultimatum as a way to survive?
-Should the DM punish the player for choosing to live to fight another day? (but abandon the npc in the process)"
First one, depends on the definition of "throw". If it's out of the blue cornered without more going on to make it anything more than a death scene? Nope. But there are a lot of cases where too powerful to fight and win fit fine in rpg games.
Second, I see nothing wrong with that ultimatum. It says "more story to come" and as GM I would expect it's likely to motivate the pc to come back. Especially once he sees the NPC being carried off, not eaten immediately on the spot.
Third, GM should
never punish the player in any rpg I am in. Not my mama. What consequences the NPCs in the world and the PCs in the world have for the character after this is a whole other question. That includes this PC as one of the ones giving consequences BTW.
So, the answer to that will likely be mixed and varied. Depending on oath and divine, I cannot see any consequence there in my games. Especially if they atone. Its likely if they spread the truth some of the now missing NPC p friends or family have negative reactions but not all. Most likely see it in a variety of ways.
To me, it comes down bigly to how does the paladin feel about it going forward and what do they do, especially in the midst of the quest to save the world. If it were me, as that quest went on, I would use every opportunity to solicit favors and boons to call in to go after the dragon later and rezz the guy.