Designated Hero: Sir Giles, although he really doesn't want to fight a fellow bard such as the dragon.
Designated Villain: In the Reluctant Dragon segment, the title character. The two manage to put up a good "fight" convincing enough for the crowd, and even manage to find time for a spot of tea and a dance.
Ho Yay: The dragon is prissy, effeminate, and camp as can be, but that's hardly an indication of his sexual orientation. The rather shameless flirting between him and Sir Giles, however...
The Beard: Sir Giles is this to the dragon, and vice versa.