While one the one side that is quite funny to watch, it does break the atmosphere.
If a fearsome dragon shows up in a city, why the hell is no one actually scared of it?
Furthermore, due to the fearless villagers, dozens of important quest persons die whenever a dragon attacks.
At some point this will leave all the towns totally deserted, apart from guards and children.
What I would like to see is, that everyone apart from the city guards flee into their own houses when a dragon attacks.

