Another interpretation is that Midgardsormr realized that the blessing was causing a stalemate: The Ascians couldn't come near the item they wanted, and as such the Scions had no practical means of testing out their means of actually killing one.
While the dragon's interference caused a death on both sides, the result is knocking both factions out of their comfort zone. The Ascians are less likely to take rash action now that they know they can be out and out killed without direct intervention from Hydaelyn, and the Scions now know something about a certain item AND that their technique actually works, AND they know what the Ascians are after.
That one act may have more far reaching implications than we realize.



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