I read it based on Anatoly Vorobey's review:

"This is fantasy for adults: complex flawed characters, a world rich in detail, multitude of characters who live and do things for their own sake rather than to advance a plot point or help the hero. Utter disregard for conventions and cliches of the genre. A hero who is an anti-Mary Sue. Endless inventiveness of the author. To my taste, this novel is what books like The Kingkiller Chronicles promise, but then utterly fail to deliver. But if you're a fan of Rothfuss, try Swanwick anyway, and you might get a fuller and richer taste of what you like."

I liked it a lot after I got through the initial section in the factory, which was over-the-top Dickensian enough to make me wonder if it was worthwhile. But it got better, and began unfurling into a mad Victorian/fantasy cross, heavy on the social oppression & economic exploitation, reminiscent of China Miéville's bourgeois imperialist New Crobuzon. The plot breaks down into a few discrete chunks of the protagonist Jane's life, which while highlighting the ruthless nature of life in a universe where the gods are real (the homecoming queen being sacrificed may be horrifying, but the consequences of not sacrificing are even more dire, as one memorable nihilist character makes clear; and our own society does not hesitate to sacrifice lives for its own ends, as with, say, coal-burning power plants) also highlight her cowardice and selfishness in betraying her friends instead of... what? We're not too clear, as the world begins melting and things get weird in an Invisibles or Dick-style turn towards radical ontological uncertainty. (The dragon, incidentally, appears in far less of the novel than one would expect from the title.)

This may sound tedious, but Swanwick really does throw all sorts of fascinating little twists in along the way that keep one reading: malls where time literally stops so you can shop to your heart's content; factories with 'time clocks' that age one if one doesn't clock out; live gargoyles, with all the food requirements flying stone entails; a man who shrinks in his wife's regard for being a coward until he's the size of a homunculus & is trapped in a jar begging for death; markets in entertaining slaves among the eloi upper-class elves; magical engineers who are castrated to ensure they do not damage the magics they work with; academics who assault the castles of the gods in the quest for knowledge, and get burned; universities with purges that are literally decimating... Still, it's a happy ending, I think. Swanwick puts it amusingly in a page of explanations:

I gave her T as a reward for making it through to the end of the novel he's the one worldly thing she wants - and, quite to my surprise, the Goddess threw in K as well. What happens next? Does Jane marry T and keep K as best friend? Does K steal T from her? Do they all fall into bed together? This one I really don't know because the real reward I gave Jane for making it to the end of the book was freedom. I ran across Carol Emshwiller just after she finished writing Ledoyt and she said she was in mourning, that all these people she had lived with for years were suddenly gone and it felt as if they'd all died. "Doesn't it feel that way to you, too, when you finish a novel?" she asked. I thought about it. "No," I decided. "It feels like all these characters who have suffered under my persecuting hand have been set free. I imagine them running joyfully in all directions, as hard and fast as they can, so that I can never catch them and put them in another book again."

Anyway, going over some of the parts of it which amused me while I was reading... You know your fantasy is grim and imaginative when astrology is due to educational corruption:

"Hello? I was sent here for remedial?" The pale man looked up. He nodded wanly. Unhastily, without emphasis, he picked up a book, opened it, paged forward a leaf, and then back one. "There are three stars in the heavens," he said, "moving about Jupiter, erratic sidereal bodies which establish a lesser zodiacal process for that wanderer in its mighty twelve-year progression about the sun."..."Excuse me," she said hesitantly, "but what effect do these minor planets have on our behavior and fortunes? I mean, you know, astrological influence?" He looked at her. "None.""None at all?" "No." "But if the planets affect our fortunes—" She stumbled to a stop at the dispassionately scornful look on the pale man's face, the slow way he shook his head. "Surely you'll agree that the planets order and control our destinies?" "They do not." "Not at all?" "No." "Then what does? Control our destinies, I mean." "The only external forces that have any influence on us are those we can see every day: the smile, the frown, the fist, the brick wall. What you call 'destiny' is merely a semantic fallacy, the attribution of purpose to blind causality. Insofar as any of us are compelled to resist the flow of random events, we are driven solely by internal drives and forces." Jane seized on this last. "Then what you're saying is that our fate lies within us, right?" He shook his head. "If so, it must be extremely small and impossibly distant. I would not suggest you put any reliance in such an insignificant entity."'...She waited, but he did not elaborate. "In introductory astrology they told us that each person has a tutelary star and that each star has its own mineral, color, and musical tone, and a plant as well that is a specific for the disease that is caused by that star's occultation." "All untrue. The stars do not concern themselves in the least with us. Our total extinction would mean nothing to them." "But why?" Jane cried. "If it's not true, why would they teach it to us?"A dry fingertip tapped the page not impatiently but pedagogically. "All courses require textbooks, charts, and teaching aids. By the time the information codified as astrology was discredited and became obsolete, it had a constituency. Certain...personages benefit from the supply contracts."

Nihilist the plot may seem to be, but it's leavened with some sharp satire; for example, bureaucracy in the factory:

At last, late in the day, the inspector general arrived. A wave of dread preceded the elf-lord through the plant. Not a kobold or korrigan, not a spunky, pillywiggin, nor lowliest dunter but knew the inspector general was coming. The air shivered in anticipation of his arrival. A glimmering light went just before him, causing all heads to turn, all work to stop, the instant before he turned a corner or entered a shop. He appeared in the doorway. Tall and majestic he was in an Italian suit and tufted silk tie. He wore a white hard hat. His face was square-jawed and handsome in a more than human way, and his hair and teeth were perfect. Two high-ranking Tylwyth Teg accompanied him, clipboards in hand, and a vulture-headed cost analyst from Accounting trailed in his wake.

School:

After Grunt had called attendance, he cleared his throat. "The Three B's," he said. "The Three B's are your guide to scholastic excellence. The Three B's are your gold key to the doorway of the future. Now—all together—what are they?" "Be-lieve," the class mumbled. "Be-have. Be Silent." "What was that last?" He cupped a hand to his ear. "Be Silent!" "I caaaaaan't heeeeear you." "BE SILENT!" "Good."

It was only when she went to empty out her locker that Jane realized how overgrown it had become. Orchids and jungle vines filled most of the space within and a hummingbird fled into the corridor when she banged open the door.

Consumerism:

It was a scorcher outside, but the mall was kept so cool that Jane was sorry she hadn't brought a sweater. The place was jammed with fugitives from the heat. They were recreational rather than serious shoppers, most of them. Their hands were empty and their eyes were clear.

College roommate strife:

"The dissection manual?" Monkey asked airily. "I ate it." "You what?" "I ate it. Why else would I want it? I was hungry and I ate it." "But I need it for class.""Then you shouldn't have given it to me." Monkey's beady eyes glittered strangely, maliciously, in her round face. "Really, Jane, you can be so dim at times." With a sudden standing backflip she disappeared through the doorway. Jane's hands clenched. But really it was no more than she had learned to expect. Roommates were forever eating your books, having anxiety attacks, adopting rats and carnivorous slimes which they then expected you to feed, getting drunk and throwing up on your best dress, moving into the closet and refusing to come out for months on end, threatening suicide the night before Finals, leaving piles of rotting leaves in the middle of the floor, entertaining boyfriends in your bed because it was made and theirs not, evolving into large bloodsucking insects. Monkey was actually good of her kind. Well, she could always pick up a new manual.

Monkey snatched the pencil from her hand and snapped it in two. Jane closed her eyes and traced the sigil of Baphomet with her inner vision. When she was calm again, she slid open a drawer."All right." There was a pair of latex gloves within. "I wasn't going to do this." She pulled them on. "But you don't exactly give me much choice, do you?" Credit where credit is due, Monkey didn't back down. There was a touch of the trickster in her heritage, and the trickster gene was a dominant. She licked her lips nervously as Jane pretended to lift an invisible box from the drawer. "You don't scare me." "Good." Jane swung a hinged lid back and reached within. "It works best if you don't believe." She removed an equally imaginary scalpel and held it up between thumb and forefinger, admiringly turning it one way and the other. "What are you going to do with that?" Jane smiled. "This!" She slammed her fist into Monkey's stomach.

Academia:

"I have been going over your laboratory reports, Miss Alderberry." Dr. Nemesis put an arm through hers, and walked her toward the front. "They are, if I may confide in you, disappointing, most disappointing in a student of your potential." "I've been having trouble with the sophic—"..."You must surely realize why I am concerned for you." "Well..." Jane didn't really, but that double glare bored into her, waiting for an intelligent response. "I'm here on a merit scholarship, so I suppose—" "No!" Dr. Nemesis stamped her foot impatiently. As if in response the elevator door slid open. She steered Jane outside. They were on an office level now. The walls were decorated with large unframed oils of umbrellas and sides of beef. The runners on the hall floors smelled new. "I am not talking about mere money, but about your very survival! This is a Teind year, surely you must know that." Jane nodded, meaning no. "The department heads are even now assembling the list of those 10% of the students who are... expendable. Your name, Miss Alderberry, is going to be on that list unless you straighten up and fly right." She glared at her: weakly, sternly.

..."What set me straight was one particular incident. My adviser, none other than the wizard Bongay himself mind you, had obtained grant money from the Horned Man Foundation to create a divinatory engine in the form of a brazen head. This was, you will understand, very early in the history of cybernetics. It was all done with vacuum tubes then...Then he saw how the head glowed and how the solder ran in little rivulets from the seams in its neck and with it the gold and silver of its circuitry. Then did the wizard Bongay himself scream, in such fury that I fled for fear of his wrath." She laughed. "He lost tenure over that incident, and his life as well. That happened near the end of the fiscal year, and the University had been relying on that grant money. Everybody involved with that fiasco was executed by order of the Bursar." "How did you survive?"
"They needed somebody to write the final report."

The University library opened its doors at midnight and closed at dawn. The rationale given for such extraordinary hours was that they discouraged dilettantes and idlers from wasting the library's facilities.

Even for the School of Grammarie, which was widely held to have pushed the concept of liberal arts to an extreme, Professor Tarapple was grotesque. A burnt and crisped cinder of a creature was he, blackened and small, his limbs charred sticks, his torso rendered, reduced, and carbonized. His mouth hung open and his step was slow and painful. He seemed a catalog of the infirmities of age. He felt for the microphone. His hand closed about it with a soft boom, then retreated. The charred sockets of his eyes rose toward the ceiling. Jane realized that he was blind....Professor Tarapple groped for a laser pointer, leaving sooty handprints on the lectern top. He directed the pointer toward the slide with motions as jerky and unconvincing as a rod puppet's. The red dot of light jiggled off to the side of the screen. "This is—" The head wobbled. "This is—is Spiral Castle itself." Nobody so much as breathed. "No one but I myself has ever delved so deep into the Goddess's mysteries. The Ocean above which it is suspended is Time itself, and so far as could be determined with our limited instrumentation extends to infinity in all directions. Next slide."...Jane was having a hard time following the lecture. The harsh white image of Spiral Castle was like a magnesium flare. It swelled and dwindled in her vision, as if softly breathing. Her eyes pulsed, aching when she tried to follow the logic of its involutions. She had to look away..."Toadswivers! Curly-mounted bobtail jades! Codheaded pigfuck bastards!" With a start, Jane came to herself. Throughout the auditorium, the audience members were rousing themselves. A Teggish professor directly before Jane's seat straightened with a lurch and a snort. A gnome to her left passed a hand over his mushroom-spotted pate. Professor Tarapple had abandoned his lecture in a rage. He was berating his audience. "Only one being—one! me!—has ever delved so far into the Goddess's secrets and returned to talk of them. By cannon-fire, holy water, and bells, listen to me! I risked more than life and sanity to bring you these photographs. I—I—I was once young and tall and handsome. I had friends who died in this expedition and will never be reborn. We were caught and punished and punished again. I alone escaped. Look at me! See the price that I paid! So many times I have tried to tell you! Why do you never listen?" He was weeping now. "Woe!" he cried. "Alas for those who seek after Truth, for such is the Goddess's most hoarded treasure. Ah, she is cruel and unfathomable, and bitter, bitter is her vengeance." The lights came gently up. The applause was thunderous.

One of the parts towards the end which particularly reminded me of The Invisibles:

"One time, passing through the Carolinas somewhere between 2:00 and 3:00 A.M., Jerry and I picked up a white Lotus with two blonds in it. We honked and waved. They gave us the finger and put the pedal to the metal. I did the same, of course, but even with dual carbs it was no contest. We had a muscle car but they had a sex machine. They made us eat their dust....Ten-fifteen miles down the road we saw the Lotus in a Roy Rogers lot. We pulled in for some take-out burgers. There they were. We struck up a conversation. When we left, Jerry-D went with the driver of the Lotus. Her friend went with me...Anyway, there I was, a blond in pink hot pants rubbing up against me. I had my foot to the floor, her tongue in my ear, and her hand down my pants. I pushed up her halter top and squeezed her breasts. The air shimmered with the immanence of revelation. Little Richard was singing 'Tutti-Frutti' on the radio and it somehow seemed significant that what I was hearing had been electromagnetically encoded, transmitted as modulated radiation, reconstructed by the radio as sound, and only reinterpreted as music somewhere within the dark reaches of my head. I felt then that the world was an illusion - and a rather shabby one at that, an image projected upon the thinnest of membranes, and that were I to push at it just right, I could step out of the world entirely. I unbuttoned her shorts. She wriggled a little to help. I slid my hand under her panties. I was thinking that everything was information when I found myself clutching an erect penis. I whipped my head around. The blond was grinning wildly into my face. My hand involuntarily tightened about her cock. Her hand tightened about mine. They might have been the same hand. We might have been one person twinned. The car was up to about 100 mph. I wasn't even looking where we were going. I didn't care.
It was in that instant that I achieved enlightenment."

And finally, the gargoyle passage. It's too long to quote, but I've posted it at http://pastebin.com/raw.php?i=HDrLMfQj