I'd like it if dragons were able to kill "essential" characters as well. It just adds to the realism, and a sense of urgency when dealing with dragons. There should be consequences, that's all. Losing an unnamed NPC isn't good enough, in my opinion. Events in the world should have a long-lasting impact that actually affects the player.
I don't see it so much as urgency as just making for realism. If these dragons are so difficult, I should just send a couple invincible townspeoplle into the countryside. They'll leave the wilderness armed to defend against armies.
I think its a step backwards from its use in Fallout: New Vegas, and only gives me the idea that these aren't really people I talk to, they're just soul-less questgivers with maybe a unique one-liner.
@stretzal: the issue at the end of the civil war and the camps is just infuriating.