I've tried to play this game a bit and although i got the first part okay, i'm quickly swamped horribly due to the change from light to medium/heavy units. Going into battle with a 80% or higher chance of winning quickly dwindles to nothing while trying to be an active dragon due to some activities the AI of the enemy is doing, like sending 2 scouts and capturing all points while i'm still trying to re-orient my camera.

So i wonder... Is there a way to activate my local army to act as they normally would, and then i can assist them as a dragon instead of trying to control everything myself?

There are hotkeys to control groups (including buildings) while in dragon form, so you don't have to switch back and forth as much, and you can have units/groups patrol a defined path and attack enemy that approach, but there is no way to switch them to AI controlled.

Lowering the difficulty will make the opponents less aggressive In RTS, until you get the hang of the controls.

Dragon Commander: The Complete Guide

Hmmm too bad. I looked and hoped to find a mod which would do the job but i haven't found one, and there probably isn't enough information on how to mod the game to do extra things which makes modding support sorta pointless.

In a custom single player game or a multiplayer campaign you can change some of the rules for RTS to slow down the production of units and make units on the campaign map more significant, etc.
In the lobby window, the button for the advanced options is beside the map selection dropdown list.

Otherwise, there are different speed settings, which you can dynamically change during combat with the Numpad + and - keys. If everything is slower, the time you take to adjust the camera, etc, has less of an impact.