It is what it is. They know that dragons are very powerful and that dragon fire is very dangerous. So they are not surprised by the state of things, but they are despairing. Apparently, it is not enough to survive being around two powerful beings as they fight. You also have to survive the effect of their battle on the environment. You can't just go into hiding while they fight and then come back up after the fight so that you can resume trying to make something of yourself.
What are they supposed to do now? Are they supposed to continue the competition in these conditions? Who can even fight now while knowing the full capabilities of Soverick and knowing that whatever they do will be a poor imitation of his fight? The competition will become children playing at war games in light of recent events.