While not perfect, Dragon Man is a great figure. You guys made the right choice. I'd be bummed if I'd skipped him and had to pay through the nose later on.
I still have Toy Biz Dragon Man, easily my most "valuable" retail find as I got him at Kay Bee Toys for like $10 (a rare chase-type find for me), so wasn't sure I wanted to replace that one. But the new one is much better scaled and I'd probably regret not having him.
I don't think I'll ever part ways with my Toy Biz Dragon Man. I too scored that for cheap, 8.99 if I recall, from TRU's website. Ordered on a fluke, and much to my surprise, they actually delivered. Had an easier time with that than the Flame On and invisible Skrulls.