Have balloons AI been dumbed down?
I am trying to learn how to do effective balloons attacks and have had some massive failures and some successes. Currently I am at TH 7, so balloon attacks with lvl 4's is not ideal but I wanted to practice now so that eventually when my balloons are maxed out.. anyhow, in the on and off time I've spent ballooning over the last 3 months or so, lately I have noticed that balloons are..... dumber than usual? Obviously air defenses are the nemesis of any balloon attack, so taking them out is really all that matters. I go for air defenses that are lower level, easier to reach. I have had success using a dragon or two as decoy and then employing balloons to take down the air defenses. It has worked, but in my last attack I noticed that it was extremely hard to get balloons to target the air defense despite my placing them in a way that logic, common sense? would dictate that they hit the air defense. Then the balloons would split in the worst of ways.... the bigger bunch hitting a cannon, and two going at an archer tower only to be shot down. I have had this issue with barbs unwilling to hit defenses to the point that I no longer use them because EVERY time or 99% of the time a barb group that COULD hit a defense will go after anything else only to be left with too few to actually kill the defense. Is this now the way of balloons, it's like they are programmed to have higher priority to hit cannons and mortars before AD's, wizard towers, and archer towers.
I see where you're coming from
Like yourself, I'm also a balloon dragon user, and I've used lvl 4 balloon when I was TH7. But I don't think balloons are dumbed down.
When balloons approach their target, they hover not directly to the center of the structure, but skewed to a side of it. This may seem insignificant when deploying them on most bases, but to defenders that purposely setup their bases to take advantage of the small increments apart among the defense (in your case making the hit order of air defense last) is what's doing the trick.
The problem you encountered should be a risky placement when deploying balloons at the center of a side, hoping they'll reach inner when they are likely to reach the next outer. Starting from a corner is safer, you may do that. Or you can try to simulate a path in your mind, anticipate what would happen in the path of your balloons before the attack.
lvl 4 balloons aren't the most amazing balloons, and what folks tell you about lvl 5 and 6 being way better, is true too. But the fact is that lvl 4 is very much usable, you just have to know your limits.
I've had great success using lvl 4 balloons in TH 7. I'm sure you would too if you continue to learn more about them. I would try to avoid solid inner air defense with level 3 and above (because they pretty much 2-shot kill a lvl 4 balloon). Though you can use the dragon to tank while balloons move in. (But dragons are expensive. Only use it when it's absolutely needed.) (same with the two heal spells.)
Also avoid bases with extended outer buildings; they take too long of a flight for balloons. And for these bases, don't just next them. Carry a small BAM army, and farm them; they are great for trophy-dropping and making some on the side. I like to carry 8 goblins to either lure the CC, activate some traps, provoke possible hidden tesla, or for attack cleanup.
Using lvl 4 balloons takes a bit of reflex. Combine that with some experience of ballooning, and you can be quite a threat.