Hisssss! You have displeased Tiamat! Dragons must be all-powerful! Curse the giants! Cuurrrssssse themmm!!!
Seriously though, I have often found that smaller, more cunning dragons could present an especially well-played challenge to PCs (this October will mark the ten-year anniversary of my players' lamentation of the power and strategy of a 28-hit-point Young Adult Black Dragon and her 8-hit-point hatchling, for example) without having to be restricted to the status of 'unkillable gods' as one DM I know has done. Your statements also remind us of the fact that your game predates the video game RPG and had instead traditional and classical mythology as inspiration, which (at least in the West) does not require dragonkind to be at all all-powerful.
Which leads me to another somewhat dragon-related question, though I promise it will be the last at least until I come up with the next one.

I recall the appearance of 1st Edition AD&D stats for the characters of the Arthurian Legends (I believe that Merlin was 23rd Level

), and as I read more of them I have become curious to what extent they may have inspired/influenced any aspect of AD&D (I am thinking also of various chromatic colours of dragon that appear therein).
Once again, thank you for all your insightful replies,
A fellow gamer and designer,
Odnasept