It's a good starting place
Overall, not bad. However, there is some room for improvement. Before I get to that, however, I'd like to say THANK YOU for posting a game the kind of which I either overlooked or have been waiting years to see. What's not to love about dragons burning villages and castles to the ground?!
That having been said, I'd love to see some more... well, MORE. Smoother animation and controls (seems to take five minutes to turn around), more challenging levels that involve more than flying left and right, holding the fire button down (most levels seem to be over in 1-2 passes), giving the dragons more depth (character-wise) and more abilities (like being able to EAT PEOPLE), and the occasional "hero" to battle the dragon. A knight in shining armor, if you will.
Oh, and can we please stop with the houses getting in the way of the attacks? Half the damage I've taken is because I'm hitting the houses instead of the enemies I'm aiming at.
Uh, in case any of that happens in the later levels, I haven't finished playing the game yet. I'm on level 7 or 8 or something like that. I've made it across the sea and burned down a castle. Somewhere around there.
ANYway, good job but please don't stop with this version. Keep making with the fiery destruction, we beg you kind sir: MORE!