It's a gimmick card. A bit less of value now due to age and a bit more hampered due to format (7 gems monsters - 20 card deck - 6 zones).
With the old 40 cards and ten spots on the field it was viable... but unless you add a bonus 'play' reward or adapt it to the new system than it'll be pretty much useless.
I mean the God cards are hard to play due to limited format and they are mostly used for point farming.
and of course there are better point farming decks than having one of those cards in a deck anyway... so very low expectations for Rainbow Dragon.
The fusion may have some worth, but mostly with fusion replacement material than actually using rainbow dragon.
And you can't cheat Rainbow Overdragon's alternate summoning method either, since it requires the right name + it's not a Fusion Summon but a regular Special Summon (think XYZ Fusions)
Well, there IS one saving grace: Over the Rainbow.
This thing might be worth it to summon if we can get Over the Rainbow spell card as well.
After summoning it, on the next turn you clear the field with its second effect, then since you activated Rainbow Dragon's effect while you control it, activate Over the Rainbow to OTK the opponent by summoning Pegasus, Tiger, and Mammoth.