I dunno. Favreau said he was a villain the fans wanted but they couldn't use in a "first movie", so they are doing it in a comic mini.
To me that leaves the door open to maybe see Fin Fang Foom down the line. But I don't think he will appear in the movies ever as a real-life dragon. Probably more of a big giant mechanical dragon that the Mandarin will ride around in. See Busiek's Heroes Return run on Iron Man.
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