them in an epic battle to the death. Dryad battles should be risky, more so than a bear battle. Dryads should be seen as the overworld troll. I envision a fight where the Dryad spawns a ring of trees around itself and its opponent that remains there until the battle is over, and maybe stays if the hearthling foolish enough to challenge the Dryad wins.
A killed Dryad can be...butchered? for boughs, blocks, and branches.
Other Dryad ideas
-Has a ranged attack
-Is peaceful until aggroed or until someone offends it. Dryad will be offended for example if you are chopping down a tree.
-Can drop a rare curiosity. Dryads Heart. Would be a wooden heart o something.
-Different types of Dryads for every tree

Thoughts?