Ha ha, I knew it would be this picture. Yes and no to the question- The dragon should look similar, with a full, animated body (although to my understanding the arms will be positioned in one place the entire time). This is a miniature used for promotion of the original Fantasmic! and, as others said, the clip has been re-used for Summer Nighttastic.
About those stubby arms... I think they went with a more scientific approach in designing that dragon. Sort of like a T-rex... that breaths fire and has wings. Anyways, I'll be glad if ours is more like Malifiacent, who needs a realistic dragon in a show taking place in a famous animated characters dream?
If you watch a video performance of Fantasmic, or see it in person, watch the animation during the transformation scene. The model they showed in the press junket looks a lot like the animated shots of the dragon on the "castle,"