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I've never seen creatures with the strength of a dragon in online battles... But after recently seeing a tactician without any skills wielding the Hand of Death, I'm not surprised by anything anymore.
As for the Death Knights, they are certainly not the most desirable tier 4 units, but they still represent a formidable force. Their main advantage is not even their huge damage and 400 hit points, but their high attack and defense stats, which, combined with the Tactics skill (which, as you know, increases them as a percentage), become simply devastating. You need to be very careful when fighting Death Knights with 70-80 attack and defense; you can't just throw heroes at them in a straight fight.

Барон "Vampires"
Отдай свои прошлые сны,
В сомненьях себя обрети,
В бешеном танце душа кружится!
Не думай, что будет потом,
Здесь и сейчас мы живем,
Стань хоть на миг сам собой, слышишь!