I like the idea of the price being set after the crowdsale by the amount you raise, I'm assuming this is an effort to eliminate dumping when it hits exchanges, like if you put in 1 BTC and walk away with 1 BTC worth of dragons, you have no incentive to dump the coin. Am I getting the idea right? Seems pretty smart actually.
How do you determine how much each ETH is worth in regards to the token sale? And since the price isn't set, is it possible that all of the tokens won't be distributed? If so, what will happen to those tokens?
Yes, that is exactly the idea.
As far as the price per ETH, all pricing of ETH will be BTC based, which will be valued daily at the close of ETH/BTC on BIttrex.
All of the allotted tokens (238,421,940 Dragons which is 55% of the total supply) will be distributed proportionally among participants in the crowdsale based on their contributions.