Re: Magic items made from Great Red Dragon's corpse
Actually, have a look at Chinese traditional medicine. Food, even "normal" food rife with symbolism, has all kinds of (basically) alchemical properties. Not always on the like-affects-like principle either.
On that note, powdered dragon horn is probably an aphrodisiac, dragon jelly soup might be a sovereign cure for arthritis, and a dose of dragon fat ointment on the chest might protect children and the elderly from winter illnesses for a whole season per application. It would be WAY better than goose-grease for keeping cold-water divers warm, too.
I'm sure there's a medicinal dish made specifically from red dragon ear frills, you can't use any other part of the dragon for it. Muscle from the thigh might be good for one purpose, while from the rump, another. Eating roasted dragons feet bring good luck in financial enterprises, symbolizing the dragons inescapable grasp snatching up good opportunities.
Boil down its cartilage to make the worlds most terrifying aspic. With a whole pig suspended in it, symbolically consumed by the dragon. Less... picturesquely, the gelatin might end up more like synthetic rubber, making it potentially useful for power transmission in that airship your players are interested in.
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