Personally I think you should not go for a smaller head, since it will end up looking like a dinosaur, and not the dragon you´re envisioning. I would say it looks balanced now. (Maybe a shorter neck though?)

As per the wings, I agree with the preceding replies as they won´t be able to lift him of the ground (or so it looks). Maybe they serve a mating purpose? If so, remember that when texturing.

On another note, I made a small image with the things I would change. Maybe it could be of use to you.