This is not a krayt dragon. It's from one of my favourite SW stories ever! The "dragon" is Willm Lywin, a Duinuogwuin Jedi master from "The Most Dangerous Foe". And it's this story that the picture illustrates.
I would have to say you may very well be correct, Zaotse. It has been many years since I last cracked open the issue of Star Wars Adventure Journal in which this illustration first appeared. My grey matter isn't all that it used to be! *smile*
ooh thats really cool! Krayt dragons are kickass. As for the threat, yes, it really is a matter of perception considering the jedi have a form (or a move not totally sure) based off of the Krayt dragon