Somehow I thought that this was just the lamest way to get rid of Serpentor. I was considering the fact that in the movie, he was nearly killed so I assume he must have had a severe head injury which in the DIC series, he appears to be a little more logical and less impulsive. However in here, it seems that he is in utter shock to see Cobra Commander (whom he usurped) back into semi-human form and I just can't get it why DIC didn't put a short fight scene. So anyway he's turned into a lizard instead of a snake, which I think was lamely written.
Just to think about it, he was originally a super-duper mean guy in this clip (season 2 from Sunbow). Then again, traumas could have altered him severely for the DIC season to promote his downfall. I kind of thought though that he could have won the Dragonfire only if he wasn't outwitted by Cobra Commander. He had more patience in that arc than when he first appeared.