I’m the opposite; minor moments tend to strike me the hardest maybe because the emotions are often times more subtle. Also because smaller moments can speak big volumes.
I’m with you though, that small moment with Arthur did strike a good blow. On one hand, I like the scene and the hopeful tone from both Modred and Arthur reaching out to each other. I can see my own Mordred keeping that little dragon gift close to him at all times and I’m currently taking that as a sign that Arthur, despite his mixed feelings, wants to try having some kind of connection with his only child (though I’m not counting out the idea that Arthur’s mixed feelings may lead to some mixed messages on occasion or there are still gonna be times when his hands are tied in a way that makes his ability to be there in some way for Mordred limited).
…On the other hand, I’m also like ‘whose gonna ruin Mordred’s day after this nice moment this time?’ (I mean, the Gawain scene was just as sweet, but then Mordred had to also deal with Galanhad not too long after).
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That sounds like what’s likely gonna happen with my Mordred; he’s a shy, friendly thing but it’s seems clear that those two in particular are gonna be the ones to really test that patience.
Though Lot himself is likely even more of a lost cause when it comes to developing something positive with Mordred; don’t see a relationship bar for him, so I can only assume that he’s pretty set in his way about being aloof and hateful toward Mordred.
A knight gotta use everything in their arsenal in battle, right? It’s only fair that Mordred do the same and give it their all. Can’t imagine most places have rules about the usages of magic of its not that common enough of a occurrence.
Though if they use it in a something like a knight contest, feel like the next time Modred comes across that same contest, there’s gonna be a new rule that explicitly state ‘no magic allowed’ (or very limited magic use allowed). 
On a slightly more RO related though, seeing as Elaine has a particular fondness of dragons, does that mean Mordred might have a chance to take her in a magic carpet ride-I mean, share a joined ride with her on either your Dragon or hers (or even just going on a flight together like one would a stroll)? Or even taking the other ROs on a nice flight?