Yes, I think that scene was really great! With Dracula being a character of fiction, you would expect Dracula to be fictional in the show as well, and so does Buffy. I think it's hilarious how surprised she is that Dracula actually exists.
But I think Dracula was way too tame and harmless in this episode. It was quite a challenge to beat him in the end, but in my opinion, he should stand above it all, he should be mightier than every character from the Buffyverse, because, after all, he's Dracula. However, he should have let Buffy 'win' and then he should have disappeared, never to be seen again, just to show them that he was real. The episode kind of ridiculed him. Pity.