Ok, here's my take on it. I haven't weighed in because I can find nothing about species or genus or anything regarding "dragonwood".
It appears to be a marketing term for an unnamed species imported from various Pacific Rim countries. Checking out a luthier website, they call it dragonwood, tigerwood and pologna, none of which translate to anything I can use to determine safety.
I'm a little surprised that parrot people would just embrace a wood without knowing exactly what it is, but that does seem to be the case.
Now, the fact that's it's imported bothers me. Most imported wood is gassed at the arrival site to kill off insects/molds etc. Without knowing the source of this wood, I'd be very hesitant to use it.