Lol interesting you see amusement in the dragon's eyes. I just see a primal and aggressive focus in them. I see nothing emotional beyond that. That's an in-the-moment attitude though, readiness to attack, yet holding back, checking out things. Nothing is determined yet.

The girl isn't running though because she feels in control of the situation in some strange way. She is also somewhat displaying a careful watching mode for sure but at the same time she's open for something more from the dragon. I'm not sure what that "something more" is. It all might be a sinister passion somehow.

Also, I don't think her wings are tucked in the way like the submissive dog's ears. Just simply at rest, indicating that the girl is not thinking about fleeing.

So, overall, to me, they are sizing up each other on first contact with complex attitudes of interest. What really took my attention in this picture was the postures/poses, the way they are looking at each other checking each other out, the suspense of them waiting before anything else happens. You also put it well when you said they were mesmerized at each other.

The other thing that took my attention was that I instantly drew a psychological parallel about how you can descend deeper in your mind to see what's hiding there and it invoked an interesting feeling/impression.

@hatesyardwork Feel free to analyse my perspective too haha
I don't have an opinion. You are an aggressor so I will watch and listen pretending not to care........you guys like indifferent men.