Since the update, it seems it is hit or miss on bettering a pet through hatching. I hatched my 56 nightmare with my 47 balance dragon and hatched a 47 balance dragon. Why no increase in potential? I feel I wasted my gold and 24 hours. This is not the first time either, I hatched a 52 utility dragon with my friend's 43 Orthus and she got a 42 Orthus. Now that really was an unhappy result.
I am wrong, I thought if you hatched higher and lower you increased potential of the new lowest pet. :?