well...it's kinda the M.A.D. doctrine written small.
A dragon, even a great dragon, is still a singular being and while capable of great destruction, can be appeased. If not, the area of destruction can be contained somewhat and it's relatively easy to track.
A Nation-state (I include mega-corps in this) has access to many WMD's that can cause equivalent, if not worse destruction than a GD on a rampage. THOR shots qualify as a mini-WMD really (over a small area) and casually chucking those around will remove the bar to temptation to use them justa little bit more if minor damage is done to corporate territory (and at the end of the day, Densva is a relatively minor amount of collateral to lose). Signaling your willingness to use such a thing will ratchet the tension up a bit with other corporations.
And Aztlan is surrounded by hostile parties (PCC, CAS, UCAS) and Corporations (Ares and now S-K moving into the CAS). Even the somewhat neutral nations (Salish, AMC, Sioux) aren't particularly favorably disposed to Aztlan. Why by the unneeded grief?
And the concept of "what happens if we miss?" has to get them pause for thought. Dragons are a (rightfully) arrogant bunch and having some emphemerals who he is not favorably disposed to trying to geek him so recently after his little brother got kacked will net him off ona roaring rampage of revenge the likes of which the Sixth World has never seen. and knowing him he'll be cagey about it too, like whiping out all the border defenses in former Texas territory, which the CAS (and S-K will take advantage off), and along the PCC border. If you get Ghostwalker and Lofwyr coordinating, it'sa big mess of ugly that evenAztaln will be hard pressed to stop