Dragon Flare becomes the second most powerful bonus action in the game (after moon Druid wild shape) from levels 1-3 where a single use can take down a lot of goblins and doing it every turn makes you the best area of effect combatant in the game, before it becomes practically irrelevant by later levels.
Deep Inhalation is a once per rest Burning Hands, which is really good as most racials that grant 1st level spells do so once per day, and often aren’t received until 3rd level. And burning hands is also overtuned slightly. Anyway, it then scales as you level to a once a short rest 5th level spell slot.
That’s an incredibly powerful ability. 3 first level spell slots a day at low levels is really really good. But 3 fifth level spell slots at 17 that can only be a somewhat close-ish cone is I think deceptively weaker than might first be apparent. It definitely breaks the pattern of features given as racial traits in the game (which I am not specifically against but it is a thing to recognize). But I definitely don’t see it as strong as level 1 flight and Gnomish Cunning or Magic Resistance and definitely isn’t as good as a free feat.
Personally, I’d follow the other spellgranting races a little. If you’re willing to go a bit modular. At 3rd level you gain your Breath Weapon for +2d6 and it increases by +1d6 every two levels thereafter, you end on 10d6 at 19th level.
You mostly skip the levels where one use of breath weapon can end an encounter. And it remains relevant as a mook weakener the entire game. Even at its most powerful 35 damage save for half isnt breaking anything at 19th level.