I watched the videos as well. I think there should definitely be a very short range where you can spawn the dragon, like basically right next to one of your units, not a quarter of the way across the map from one of them, and when you switch away from Dragon mode to RTS mode, maybe a 10 to 15 second Cooldown before you can spawn the dragon back in again? But if you actually die in Dragon form, that should have a pretty big cooldown penalty, anything less than 60 seconds wouldn't feel like enough. EDIT: The buy-in penalty mechanic from the NEW video actually looks like a it might work better, especially since it acts as both a cash penalty and a cooldown as well.
On the note of dying, perhaps when the Dragon's HP hits zero, instead of dying, there's a teleport animation. (The rationalization for the penalty is getting healed up from severe wounds in the medical bay.)
Edited by Stabbey (08/21/12 10:53 AM)
Edit Reason: edited post