It makes sense as a pinball game. I mean the worst part of Dragon's Lair is the gameplay (I have one in my arcade).
The modes are defined by the video game. Each scene of the game could be a separate mode that you have to progress through.
One thing about Dragon's Lair... when my daughter's friends come over to play in the arcade they all LOVE watching the game but HATE playing it. The timing aspect is just too wonky so they give up after a game or two.
I wonder how much $$ George Bluth and his team would charge for the license?