They're certainly in need of a few QoL/balance changes.

"But my question is, is my level 100 Dragon ever going to be better?"

My OCD side hates you right now. It's a Drakon.

"MMO's have raised level caps before. Pokemon did a serious Mega-Evolution thing."

Pokémon isn't an MMO. Also; Pokémon has been out for years. The Sprites have only been out for a few months.

>But my question is, is my level 100 Dragon ever going to be better?
If OOO ever bothers buffing all the rubbish abilities of all BS, then yes. You have chosen the worst pet anyways.

sprites are already useful. just some people don't use them / don't use them correctly
WARNING --- WALL OF TEXT --- WARINING

drakon:

fireball is an excellent tool to deal damage to a little group of enemies. and it also has a chance to set them on fire.
concussive fireball is the same, but deals stun too. it's especially useful if you want to hit medium-big enemies to deal them damage /give you time to charge your weapon.
meteoric fireball extends your rage and gives you more knockback and interruption. it's a fire pulsar with less knockback, more interruption and a bigger AoE.

flame barrier can deal a large amount of damage to a crowd of mobs. it also set them on fire. you can go for moar damage spinning counter-clockwise around monsters.
backfire barrier gives a movement boost, that is useful for evading purpouses. enchances you chances of survival. if you want to actually use the barrier, don't get this.
scorching barrier adds another orb, and maybe more damage. all I know is that if you spin counter-clockwise you can kill a lumber, even with an iron harness.

firestorm is great for spreading strong fire in an area. well, it's all it does.
explosive firestorm lets you deal more damage while you deal damage with fire adding damaging explosions into your firestorm. damaging is the main focus, if you didn't get it.
frenzied firestorm gives a 5 secs party buff that resets every time a mob is set ablaze by firestorm. it works even if the guys are immune to fire, cause the status is applied but nothing happens to them. while you get a buff.
right now explosive is better. before, frenzied could stack with itself giving you a 30 secs buff. now it doesn't. get explosive.

seraphinx:

ray of light is an excellent crowd control tool. you can block enemies in a corner or in a passageway while you charge your weapon. it also has some damaging skills, until invicitrinks kick in.
dazzling ray deals more damage to fiend and undead. don't get it. don't.
disentegration ray lowers the defense of monsters hit by the ray. yes, not only crowd control, it actually makes monsters more killable. all types of monsters, not only two families.

heart attack is really good to help your party. it makes more hearts drop from enemies. what do you want more?
violent heart attack adds an explosion if the target dies while affected by heart attack. the explosions don't do damage apparently. I haven't seen it much, but I can see some crowd control things in it.
iron heart attack makes enemies drop more defense orbs. they are the same orbs that you can normally pick up from a monster. it was useful once.

angelic aura is an activable shield that protects you from all kinds of damage. it has an health bar, but it's quite big in the suration of the skill. it can trasport two people into 5-6 blocks of active traps.
seraphic aura gives increased shield regen, so you can defend while your aura defends and give you teammates more defense. I think you get what I'm talking about.
valkyrian aura maxes out your CTR. you read well, it maxes it out, it doesn't go beyond max. this is for non-chaos users.

maskeraith:

caustic quills is arguably the most powerful move you will ever get from a sprite. it shoots quills that stick to the target and have a chance to poison them. then you can blow up the quills by hitting the enemy. you can stack a maximum of 4 quills onto a single enemy, or you can get a cutter and deal a thousand damage to a single target. also autogun, but it doesn't qork quite as well.
vengeful quills, on exploding, have a chance to quill other monsters with normal quills. spread damage and poison with vengeful quills!
virulent quills have a chance to explode more and set poison onto other enemies. yeah, that's it. idk if it's worth it.

shadow cloak makes you invisible and gives you a one time defense buff, that lasts until invisibility is on. you can make many surprise attacks with this.
deadly shadow cloak gives you a damage and movement boost that lasts a bit more than invisibility time. very useful for moving into a better position and going for the kill.
vengeful shadow cloak makes you explode if you are hit while invisible. you are not harmed by the explosion, but it knocks back enemies. great for escaping many enemies that attack at the same time. if you like using shadow cloak, don't get this.

hexing haze tags an enemy, and when the tag goes off, they get damaged. it work like a portable mist bomb, but it takes a bit to hex a target. you can make ghostmane stalkers a joke with this thing. it also deals great damage to crowds.
haunted haze spawns a ghost if you kill with haze. it has two problems: 1 to kill with haze you must weaken an enemy first or be in T1, 2 the ghosts deal 5-6 damage. no, I didn't forget a digit.
chaotic haze has a chance to deal a random status. yeah, that all, but better than the other one, aye?

Pets aren't weapons. They are used for utility. Stop treating your pet like it is useless because it doesn't act like a weapon.

this?
http://forums.spiralknights.com/en/node/91255

I've said before that I honestly think Drakon is the worst sprite... and I still do...

Time for a quick copy and paste:

"The thing with Drakon is that unless you have it at Level 100 and choose the Ultimate that gives your team an attack bonus with Firestorm, it has little to no support for the team, which is the one thing that stands out about Battlesprites.

For comparison:

Seraphynx' Light Ray is more or less useless, however it has an ultimate that can lower a target's defense, allowing your teammates to pack in the damage.

Seraphynx' Heart Attack stands for itself, being one of the most supportive sprite skills in the game. There can never be enough hearts.

Seraphynx' Barrier is large enough to protect teammates from damage as well as yourself, and both ultimates are basically made for party use.

Maskeraith's Quills poisons the enemy, allowing for more damage team-wise. It doesn't seem helpful for poison stratums, however the quills also act like catalyzers, doing insane damage when they explode. Anyone in the party can hit them.

Maskeraith's invisibility isn't very team-savvy, however it is good for supporting a single player. Keeping one person alive is still better than everyone dying.

Maskeraith's Hexing Haze speaks for itself... you really can't understand its power until you try using it for yourself.

Drakon's Firebolt can be used to hit switches and melt Ice Cubes, you'd be better off taking the time to hit with your weapon otherwise. While one of its ultimates can stun, we have shield-bashing, and again it'd be better to just attack with your weapon.

Drakon's Fire Barrier is basically a 'get-up-in-their-face' move. No, it literally is just that. Very little support there except for a single person. However, like Maskeraith's invisibility, Backfire Barrier could be used to run away from enemies in a tight situation. While I could go on to say that "keeping one person alive is still better than everyone dying", to date, I've never seen anyone use it for that reason.

Drakon's Firestorm has received enough hate already for me to have to go on about it. One of its ultimates gives your team a small buff, but it doesn't last very long, especially for such a long cooldown.

So, who's the odd one out?

None of them are better than each other per se, however, each of them can be classified as 'more useful than the others in this situation', and even further into 'this sprite is more useful than this sprite in more common situations'. Maskeraith is, to be blunt, the most all-around useful Sprite. Seraphynx is useful, however it's more of a protective Sprite, and it stops losing its merits when your party is defensive enough to not need the extra protection it gives. And Drakon... obviously has the least support of all of them. I can't say much on it as I rarely use mine, and for a good reason (I use my Masker most of the time, and my Sera the other tiny bit)."

You can't really ask for the potential of the Sprites when the one you use mainly is the least supportive one, and goes against the entire point of Battle Sprites.