That tends to work. Some of the additional true dragons from supplements need an adjustment here or there due to particular abilities. Such as the Pyroclastic Dragon with its Save or Die breath weapon
Yep the key is the Young Adult age category, this is where many of the true dragons get a kicker of Teh Gud Stuf. Things that put them beyond use as PCs. The spellcasting is icing, the boosters are really DragonFear and especially Spell Resistance. You can dump the last two and extend it a while for some of the less powerful true dragons for epic level play. But even then the stat bonus really start to rack up past juvenile, faster than normal PC races can compete even with lots of ability boosting items.
In play I generally allow True Dragons up to Juvenile as equivalent to their racial HD in level. But reduce their point buy some as compensation for certain (mostly metallic) true dragons, others need those points to maintain a reasonable int at low age categories (like the White). Don't be afraid of Dragon PCs, the most fun campaign I ever played in was a party composed entirely of adolescent true dragons. The inventiveness and IC banter and roleplay was just incredible.
He's about on-par for a 14th level party, the capabilities aren't distributed quite like any PC class but they're batting about the same.
Extended Review
[sblock]His HP will be about on par with a fighter or barbarian of equivalent level . If you seen charging or lancer builds he's got about the same role, a resilient mobile front-line combatant. He can fly but a spell has let the fighters do this since 5th and by now overland travel boosts via spell or item are available. The breath weapon is a nice source of reliable damage but the full progression casters can pile on more raw damage if they want. And they're tossing SoDs by this time on top of it, in some cases have been since 8th level. His casting is offensively inconsequential, about the limit of its use is utility spells and self-buffing. Opponents of reasonably close to its level will not fail saving throws on offensive magic.[/sblock]
I'd say you're example looks good. The class levels are spread out, there's a steady progression through the age categories and it ends up at the right place. I don't allow silvers or golds as PCs because they were specifically made as uberdragons with additional ability bonuses and extra powers. The alternate form isn't really an issue considering the ability of casters to mimic it. But especially the higher Str and Int/Wis/Cha progression are the issue.
The Draconominicon recommends advancing their racial abilities based on in-game age. But with how quickly many campaigns wrap up in terms of in-game chronology this is frustrating and tends to deny a player the ability to shine as a dragon rather than just a scaley PC. I tend to use one of two methods.
The first is much like yours, since each age category has 3 racial HD you get 1 PC class level per age category. Some of the prestige classes from Draconominicon can be downgraded some and included here too. Split either after the first or before the last racial HD of an age category.
The second is as much a setting change as PC progression change. In this version dragons mature to juvenile level rather quickly then have a long pause before making the jump to full maturity as a Young Adult. All the HD up to Juvenile are racial HD, then you start adding on class levels afterwards.
Other Advice:
@ Beyond the ordinary checking out for any Dragon PC, splatbook True Dragons need to be carefully looked over before approval. I refer you to the previously mentioned pyroclastic dragon and its SoD
disintegrate breath weapon.
@
All true dragons are the wrong size category. Their official sizes are at the upper end of the next size category above what's listed in the MM or SRD. Dragons listed as "Medium" by the MM are in fact 16 ft long, "large" dragons are in fact 31 ft long.
@ Dragons are capable of crude opposability on the level of an ape with their fore talons when they're not standing on them. Even so one of the most interesting parts of a dragon character are the physical differences from more ordinary humanoid PCs and these should see some use.
@ Let dragon racial caster levels stack with class caster levels.