Dragon Emblem - like Armor Emblem - escaped the buff nerf brought on by Brave Ike and Brave Lyn. So Fortify Dragons is still a good option, especially on units with high HPs who won't be affected by Panic Ploy. Still I'd probably hold off on inheriting it until the next Dragon gets released, there hasn't been a new one in awhile and I hope that there's one coming with the Tellius units.
That said... Generally, it is worth merging dancers to compensate for their lower arena scores. If you use Ninian a lot in the arena I'd probably go for that myself.
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