1-You're quite close from the end: 4* levels (caves): one for each dragon armor part, 1 Hell Of A Beach Fight (seemingly continuous flow of enemies, almost endless respawner) and the final level.
2-I too was quite underleveled when I got to the end, but I was at least lvl 35, you're sure you don't have a few sidequests remaining?
*Actually I don't remember if there are 3 or 4 parts of the armor.
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