It's not a very good introduction to compilers. Read Engineering a Compiler by Cooper and Torczon. The Appel book is also very good, and contains some stuff about functional and logic languages that are generally missing from most compiler texts. If you're an enthusiast, but not in it to build a compiler, I really enjoy Programming Language Pragmatics. For more advanced material, use the Muchnick book, or the Compiler Design Handbook (both editions have different materials). They also provide excellent pointers to literature, but aren't great for beginners.
I get the impression that most people who recommend the Dragon book haven't read it. When I was doing my PhD I had five or six books on my shelf, and was constantly unimpressed with the Dragon Book, but always impressed with Cooper/Torczon, Muchnick and Appel.