It doesn't actually specify "true dragons". It just specifies "dragons". Dragonwrought kobolds explicitly have the dragon type, so it's all aboveboard.
People arguing about "well, maybe they just qualify as dragonblooded" may be directed to the section talking about true dragons qualifying for Singer of Concordance, despite the fact they cast arcane spells rather than divine.
The silly TO part is attempting to get a higher level progression's BAB and saves out of it, which I freely admit is on pretty shaky ground. Basically, there are three possible interpretations of how save/BAB progressions work (as there's no canonical explanation of how it works, it's left as an exercise for the GM - under normal circumstances, you take every level in order, so it never comes up)
-ProgressionFormulaOfClass(Number of levels in the class) = Saves/BAB
-MostRecentLevel = Saves/BAB
-All levels grant bonuses, but since they're from the same source they don't stack and only the highest bonus counts.
Now, any sane GM will smack you upside the head if you try to get BAB/Saves, which is why I moved the thread into theoretical optimization (I only realized the BAB/saves thing partway through the post). On the other hand, just doing the trades early seems legit, though it does stink of gouda, and you will end up paying the price of the tradein eventually.
