I don't feel Dragons are overrated. On a personal note, I'm a huge dragon fan, and not just in the Pokemon world. On my dresser I must have at least 10 dragon statues, including a dragon Megatron. But that's another story.
Dragons are supposed to be mythological and rare, but also powerful. The Dragon-type is no different. It is one of the rarest types in the game, with only a handful of members outside of the legendary department. Dragons are supposed to be strong, as per their nature of origin. What person hasn't heard of a dragon being powerful in some fantasy or story book? It's their nature.
Anyway, the Dragon-type was designed to reflect that very mythological nature; strong, powerful, adaptable, but also rare and difficult to master. Dragons like
Garchomp, Hydrogedon,
Dragonite, and the legendary group like
Dialga and
Rayquaza reflect this description. So what if Dragon-types are only super effective against other dragons? That's why many of them have a sub-type, to expand their range. Dragon-types often have a wide selection of moves, too, so it can cover more ground. To balance this out, Dragon-types are difficult to raise, thus further reflecting the nature of the original creature.
Anyway, moving on. The reason Dragon-types are only super effective against itself is to balance out the fact that it is very powerful to begin with. But that's the point; dragons are powerful to begin with. So what if a STAB Dragon Claw doesn't do super effective damage against a Dark- or a Water-type, it will still hurt, regardless. You have to understand that it's the very nature of the beast to be immensely powerful.
If you ask me, Water-types are much more overrated. They are just too well balanced, offensively and defensively. They (usually) only have two weaknesses, though that can change pretty quickly, they can hit too many types with super effective moves, and they can learn a wide-range of moves. What's saying the Dragon-type isn't the same? Would you be complaining if Psychic- or Dark-types were this way? Water is far more overrated; it gets too much support and its balance it too perfect. Dragon-types are powerful in their raw state, yes, but they are much harder to perfect, and their weaknesses can hit much harder. Let's see how long a Dragonite will last against an Ice Beam. Not very long, if I know my typing well enough.
Again, you have to understand it's the very nature of the creature to be powerful, or at least pack enough punch to be useful. What legend, story, or myth about a dragon doesn't depict it as some sort of powerful being? But you must also understand that they are not invincible. If they were, then there would be no point in challenging a Dragon-type. Not one of the 17 types is invincible; they all have pros and cons. Dragon-types just tend to have more pros than cons. You have to see it from both sides, not just one or the other.
So, in short, no, Dragon-types are not overrated. They just simply reflect the very nature of the original creature they are based from; the dragon. Just like Fire-types reflect themselves as glass cannons (destructive but fragile, the very nature of fire itself), Dragon-types do the same thing.
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