In short, DragonflyBSD is Dillon's experimental OS with ideas he would never be able to get into FreeBSD. It's never really found a niche for production use as far as I can tell, but I'd love to be proven wrong on that.
Source: FreeBSD user of several years either as a server OS, workstation OS or both. And I've dabbled with Dragonfly and love reading about obscure unices and their quirks.