I realize the OP is training a pet and testing it against his friends and whatnot. I don't think this is a good way to test it, either. There's no way of telling whether he's one of the many pvpers that complains about balanced pets in pvp just because he doesn't know how to fight them (or he refuses to run templates that do well against tamers). Also, his argument is that the pet is too powerful because of the many pvp abuses that can be used with it. That's a bad argument.
In reality, the pet is completely counterable, but also useable with some pvp imbalances being used by gimp tamers with all pets. The new dragon doesn't do as much dmg as other 5 slot options at a pvp tamer's disposal, which blows the "overpowered pvp pet" argument out of the water imo. I can counter the pets that do more dmg than this dragon and I can counter this dragon.
I recognize the abuses he mentions, but they aren't problems with the pet. They are problems with game mechanics that need to be fixed. You don't nerf a pet to fix a broken game mechanic. That's like perscribing tylenol for cancer.
Now to specifically respond to your comments.
I concede that making ninja forms take control slots isn't the only way to fix the ninja form abuse. After reading other people's ideas, I think a better fix is to disallow kill commands while in a ninja form and to disallow the use of the pet ball while in a ninja form. I would prefer to see how those restrictions would play out before going so far as to make the ninja forms take control slots. I think those restrictions (suggested by other people) are more intuitive and easier to implement than what I came up with.
I completely disagree that being in a ninja form with just a rune beetle would be overpowered. It's just a single pet, and a pet that has a slayer vulnerability. I've gone against gimplates using beetle and bake and completely owned them. I would most definitely own a gimplate that only has the beetle.
Regarding your comments about adding a cool down timer on the pet ball...
Adding a cool down timer to the pet ball wouldn't solve anything. You would still be able to use the pet ball in with combos. A cool down would at best solve repeated summoning, which is arguably a non-issue. The issue is combo-summoning, which is my term for using a pet summon as part of an attack combo.
I had to read your statement a few times to understand what you were trying to communicate. You're talking about summoning the pet before it dies. Your sentence reads as though you're saying you wanted to summon the pet before you die (which didn't make sense). I think you have a point that a consideration should be placed into the ability to summon your pet out of a dangerous situation. I think pet ball summoning could still be treated like any other spell/summoning by having a cast time/recovery placed on it and still allow a tamer to evacuate his pet if the tamer makes the evacuation decision quickly enough.
Just throwing some numbers out there... Maybe the pet ball would have a 5 second, interruptable cast time. During this cast time, the tamer is frozen in place as though he were casting a magery summoning spell.
I realize you said a dexer specifically couldn't summon his pet out before it dies. Generally pet balls are used on combat pets because you can't use the pet ball when you're dead, so I assumed you were talking about a combat-ready pet that your dexer apparently uses. Either way, I think the negative impact of a 5 second cast time would be minimal and I certianly think a 5 second cast time would have a much smaller negative impact than the positive impacts it would have.
Lastly... regarding your comments about my saying the OP didn't do the math.
Testing a pet on your friends puts you at the mercy of your friend's gear and strategies. If his friends aren't wearing gear that is good vs a fire breath attack, for example, naturally they will get hit hard with the fire breath.
I have most of UO's combat system in a spreadsheet and have tested it against in game experiments. The numbers I see in my spreadsheet are consistant with everything I've seen in game including what I've seen with these dragons. It's very easy for me to draw the conclusion that if he's getting hit for 65 damage on a fire breath that he doesn't have 70 fire resist. Fire breath damage is based on the HP remaining on the critter and possibly the base damage and/or the max hp the critter can have. That being said, wild dragons will do more damage with fire breath than tamed ones, and the wild ones aren't hitting me for 65 damage in my < 70 fire resist. When I'm in mid 50's fire resist, wild dragons hit me for about 65... That tells me he's crying wolf. Or possibly there's a bug in the new dragon's fire breath that makes them do the same fire breath damage the wild ones do... that's something that could be tested. Either way, when he threw out the number 65 dmg on a fire breath, I threw his results out the window because they were higher than the fire breath numbers I'm seeing in 60's fire resist when the fire breath is done by a dragon with double the HP of his dragon.
Also, he could be led to believe the dragons do too much melee damage if he's not wearing much physical resist.
So anyway... think what you will. I'm not talking out my butt