They should, in my opinion, generate more advantage than the equipment they replace. Remember they were a reward not a curse. Perhaps the advantage should not be much more, but it should be an advantage. In this case the advantage is given in PK. This is quantifiable however.
A ranger archer using the proper arrows and a decent bow can output a lot of damage every round and is a lot more reliable. In this circumstance why would this character want to use the dragon? A fire dragon can smoke, but so can the archers arrows which again do more damage. Sadly I don't know the other dragons well enough to comment on those in this circumstance.
Any other character that has the appropriate skill set using a bow and arrow is going to be doing more consistent damage over the fight than the dragon will though the dragons damage might be able to spike a little higher on any given shot than the arrows or produce smoke. Access to smoking equipment is really not all that limited so that's almost always a danger anyway and most classes that can use ranged weapons can dirt kick anyway. A fire or lightning dragon here is not really an advantage over a bow other than you give up the consistent damage for random damage and/or a chance to blind and you can use a shield if your not dual wielding.
Any character who cannot use a ranged weapon can pick up a significant advantage from a fire or air dragon OR use any one of a number of more useful floating items at least one of which also produces lightning damage. The key here is it is still replacing an item. I have never seen a dragon more useful than certain floating items particularly some of the unique ones, but the dragon you can hang on to no matter what.
This can also be an issue. Remember if you accrue too much owner only stuff your inventory will get full. Pit weapons, RP necklaces, Dragons, Quest Rewards, Imm Rewards... eventually you will have to start choosing what you want to be rid of.
The point of this is, I dont think the dragons need their own spot. I think they need to either be made more viable at 50 to justify their continued use (Again upgrading with RP points is a possibility and Vaerick also had an awesome Idea) OR have them not come with curses on them so when they are no longer usable they can be discarded OR have the ability to store them in a bank.
