Skyrim’s new 1.2 patch seems to have addressed the most pertinent issues arising out of Patch 1.2.
Dragons are now flying in the right direction and resistances seem to have been fixed. So far, had a good three hour session on Wednesday and no issues at all. Bethesda is also promising a bigger patch fixing a lot the Quest glitches. The Creation Kit is also being released in January which means MODS 😀
So set your Steam back to Online mode, download and happy playing.