I forgot to mention my theory for why Lair of the Mad Dragon is so difficult. I think it’s to get people to buy resurrection scrolls, plain and simple. When you’re sitting there dead on the floor, there’s a button that says "spend X zen to get life scrolls!" I expect that if everyone could rez after every death, the dragon would be a lot easier to defeat.
That being said, I do expect them to nerf Chortlefax at some point. The difficulty increase from even the previous boss in the Lair to Chortlefax is just ridiculous.