"Indeed all the things you mention did happen on this planet, but it wasn't 1/3 of the stars in the sky falling on it."
Exactly, and that being the case, common sense, since we know the 'stars' did not fall literally, and there is no literal 'dragon' rather the word 'dragon' to describe the role that Satan, the devil has been, continues and will be allowed to play, tells us that we are not talking about literal stars.
So we have a figurative 'dragon' dragging with his tail one third of the 'stars of heaven', a figurative description of 'souls' or spirit bodies, angels, etc., and history, because it happened before man was created in the flesh.
Note we are told of this in Isaiah, 14:12 How art thou fallen from heaven, O Lucifer, son of the morning! (Morning star) how art thou cut down to the grounds which didst weaken the nations.
13 For thou hast said in thin heart, 'I will ascend into the heaven, I will exalt my throne above the stars of GOD: I will sit also upon the mount of congregation, in the sides of the north:
Ezekiel 28:14 Thou art the anointed cherub that covereth; and I have set thee so; thou was upon the holy mountain of God; thou has walked up and down in the midst of the stones of fire.
15. Thou wast perfect in thy ways from the day that thou was created,
till iniquity was found in thee.
Jeremiah 4:23 I beheld the earth, and, lo, it was without form, and void; and the heavens, and they had not light.
24. I beheld the mountains, and, lo, they trembled, and all the hills moved lightly.
25. I beheld, and, lo, there was no man, and all the birds of the heavens were fled.
This man is speaking about man in the flesh 'adam.
26. I beheld, and, lo, the fruitful place was a wilderness, and all the cities thereof were broken down at the presence of the LORD, and by His fierce anger.
Jeremiah starts off this description of a flood, and it is not Noah's flood with this setting.
Jeremiah 4:22 For My people if foolish, they have not known ME; they are sottish (stupid) children, and they have none understanding; they are wise to do evil, but to do good they have no knowledge.
Correction one of probably many typos 'if' should be is.
Jeremiah 4:22 For My people is foolish, they have not known ME; they are sottish (stupid) children, and they have none understanding; they are wise to do evil, but to do good they have no knowledge.
You are mistaken when you attribute your interpretation of stars falling to common sense. Common sense doesn't allow us to know that it wasn't 1/3 of the stars at all. Awareness that (a) stars are like our sun (b) very far away and (c) exist in large numbers are not derived from common sense. They are all comparatively modern fruits of science that have altered biblical interpretation.
To a medieval priest the belief that 1/3 of the stars in the sky could fall, perhaps creating small craters like meteorites, would have seemed perfectly reasonable. That priest would mock the "new" science of astronomy with its talk of countless stars like our sun and point out that his beliefs have scriptural authority (references to stars falling, references to the stars in heaven stopping in their tracks, geocentric view of universe). I contend that my hypothetical medieval priest mocking the notion of other suns is in exactly the same position as a modern pastor who rejects the evidence for an ancient universe and evolution.