Deciding that it is time to confront the dragon, I return to the Dragonforged who is nice enough to tell me where to find him. He also mentions that when he tried, he lost and is now just a ghost. That does explain why only I can see him! The beasts lair is beyond the Great Wall, guarded by hell hounds, succubi harpies, and gorechimera. It is also strangely familiar in that it is the same place I dreamt of at the start of all this... only Savan and his team were the ones hunting the wyrm.
More awesome than Zhaitan.
We eventually reach it and I am surprised that the tavern keeper Inez is a prisoner here, and the dragon offers me a choice: fight him and potentially end the world, or kill Inez (who represents my love interest I guess?) and live forever... which is what the mad Duke did. Obviously I fight the dragon - and what a glorious fight it is, covering a huge distance as we run through and a top of ruins, shoot at it with ballista, ride on it's back, and ultimately face it in a big arena!
Heat seeking magic arrows are very handy in this fight, but in the end the dragon goes down due to my learning how to double jump and grab onto its chest - followed by daggering its heart ad nauseum. After a long battle, the dragon falls and I eat its soul (Dovahkiin)! Well, not really - but he is nice enough to magically return my missing heart before disintegrating. Afterwards we take Inez back to Cassardis afterwards where she shows her appreciation, by giving free drinks and snacks all around! :P