Useful. If someone is searched by a large City Guard patrol, too many to take on, or have allready murdered someone and don't want the murder weapon ever to be found, it can be pushed all the way inside.
A nice holding item. I'd make it so lost items are not forever lost, but still require such things as plane-hopping or very high magic to retrieve.
A cool critter with lots of nice details.
Making it completely undomesticatable limits its usage though - perhaps a small percentage are actually less pyschotic and potentially tameable, though for some reason this trait is not inherited. As a result, people may still keep and breed them, and the rare few that are usable would become highly prized.
An elicit trade in 'tame' Drakes could emerg, where normal P.drakes are magically tamed and sold, only to result in unfortunate incidents when the magic wears off or is dispelled.
They could also be used in cage fights too, given their nature.
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I like the use of progressive condition weapons, just a little taste now, but you can have way more latter, you'll have to pay for it then.
Interesting. I would like to know how the PC is supposed to learn the passphrase to activate the sword, though. Perhaps it can be inscribed upon the blade? Or does the peddler mention this fact?
Items (Tools) (Magical)