(I tried writing SH and TH below with the actual dragon runes using square brackets, but for some reason this messed up the text of the entire post. Krosis.)
One thing that strikes me as odd with the Dragon alphabet is the spelling of the sounds /ʃ/ and /θ/. These are conventionally spelled with the digraphs sh and th in English, but the reason for this is primarily a “historical accident”. (In Old English /θ/ was written þ or ð, but these letters fell out of use with the advent of the printing press.)
The Dragon alphabet uses rune digraphs SH, TH for these sounds. Under the common assumption that the language has been largely unchanged since its creation, this makes no sense: why would these two sounds in particular be written with two runes each, instead of one?
One explanation might be that the sounds /ʃ/ and /θ/ were not part of the language when the runes were created. The spelling SH and TH might then suggest how these sounds arose: as variants of /s/ and /t/, respectively.
For /ʃ/, we might se indirect evidence of such an evolution in the word pair shul ‘sun’ and sul ‘day’. At the time of the creation of the runes, this would have been the same word *Sul ‘sun/day’ (the capital S represents the sound – probably /s/ – of the rune S at the time).
I have not been able to discover any evidence of a connection between /θ/ and /t/. However, related words such as su’um ‘breath’ and thu’um ‘voice’ indicates fluctuation between /s/ and /θ/. Assuming that /θ/ developed from /s/ just like /ʃ/, it is notable that this new sound did not use a spelling based on S – possibly because SH was already in use for /ʃ/. Assigning the new sound to the rune sequence TH might simply be a choice of convenience, /t/ being the closest related sound with an existing rune.
~Zul