Hey, this seems like an interesting project so far!
I have had the game crash a couple times when speaking to NPCs, so I'll post that error at the bottom.
Movement has a lot of potential with the fast flying speed plus the morph ball, and the air dash if you can get the right bounce or gather the yellow orbs. I can imagine regular levels or user built ones being like time trials, having you flying, bouncing, and rolling around as fast as possible.
From just the demo though, I'm a bit confused as to what type of game this is planned to be? Is it going to have levels/separate areas, or will it be one large open world like it is now? Is the level builder going to be its own separate mode, or is it going to be a feature of regular gameplay? Will there be combat since your dragon can shoot fireballs, or is it all about the movement? And if you don't know any of those yet, that's completely fair since this is just a demo version. Keep up the good work