Ustwo brought up my main point, but here's something else on your other point:
Reptiles/dinosaurs would make lousy labor animals for a number of reasons:
1. The big carnivorous dinosaurs would be ill suited to the task, just like tigers are not good at pushing the plow today.
2. Being cold-blooded, reptiles are not like a car that you can turn on and off. The conditions have to be *just right* for them to exert themselves for any extended period of time.
3. The mental capacity of your average dinosaur pales in comarison to a donkey. You couldn't train it to do anything. If you genetically mutate it so that it has a bigger brain, well then maybe something is possible, but I wonder if there's something about being cold-blooded that keeps reptiles from being really smart.
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