I have a very vague plan do to that some time in the future.

What's not good is that your Dragon is all about fighting. Throw in social or personal moves too.
Hoard of 100 coins it the best thing in class, keep it. You can even make it 1000, doesn't break anything. Oh, how about this:
You start with [...] and either 1000 coins worth of miscellaneous valuables (it's not a horde but it's a start) or a mortal friend.

if not why one should  ever use a shortsword that makes less damage and has the same range of a long sword?

Because you used up their resources or showed them the downside of equipment? Short sword is much more useful in tight caverns or something. Or long sword generally makes more damage but werewolves only care about silver short sword you found recently.

About alignment: it's the player who decides whether her character gets XP or not. Neither GM nor another player and certainly not authors of the game may force him not to mark XP if she feels like it.
If your player have fun playing it literally, good for him, though I doubt it was original intention.

It seems like a bit of work for the MC; even a 10+ has some sort of consequence to factor. 

That's the best part of the class. It snowballs like crazy. The wost part is that Mage tends to occupy the spotlight all the time. Other classes have things where they shine and where they do not, Mage breaks this niche protection. That's my experience anyway.

Yeah, what's the difference? Gazetteer is said to be build from last commit on github, is there something you didn't push?

You should not only be a fan, but also portray a fantastic world and fill the characters’ lives with adventure. So druid shapeshifts into pigeon and gets all kind of fantastic pigeon adventures. If he doesn't, you're not playing by the rules.

Not really relevant, but in my game we never had a problem like this. We had this dialog on the first session:
-So what's easier to shapeshift into: small animals or big ones?
-Big ones, I have a very hard time shifting into small forms.
And then we played by this answer.

Well, no XP for my players then :)

This sort of question you should ask the player or the players.

So, Druid is all about natural, right? Druid, what's natural in the wasteland and what is not? Wizard, what foul beasts out here are your kind's creation? Druid, do this worms actually have a spirit?