I agree shopkeepers really shouldn't be fighting dragons like alvor and could run into there homes for protection like any normal person would. Now I like that NPC's has the ability to die against an attack but the AI has to be refined a bit more. Fist fighting a dragon is about as stupid as jumping in front of a unpinned grenade on the floor. AI also needs to be a bit smarter, maybe they could add this as apart of the expansions to give a more realistic feel.

There are already very few NPC's in the cities as it is. So when a dragon attacks a city and kills off 5% of the population, it svcks.