Edit: With point buy it would be more balanced especially since meta types with extreme Attributes tend to be expensive. However Regeneration should still be of the table. Regeneration is too strong without a Allergy that opponents could exploit and it was removed from shapeshifters too. Dragons don't have this power either so there's little that justifies allowing it.
Improved essence and edge is not available via any other option and I would be cautious with that. I recommend forbidding Lucky quality to not take any risks.
However if you spend 125 of 800 Karma on buying True Dracoform you probably get a less versatile character. If Karma-Buy and Sum-To-Ten/Priorities are options at your table, expect your values in human form to be worse than those of any comparable build in Sum-To-Ten.