I just found out about this tree from an episode of "Life".

http://en.wikipedia.org/wiki/Dracaena_cinnabari

The unusual shape of the dragon's blood tree is an adaptation for survival in arid conditions with low amounts of soil, such as in mountaintops. The large, packed crown provides shade and reduces evaporation. This shade also aids in the survival of seedlings growing beneath the adult tree, explaining why the trees tend to grow closer together.

The key point of this tree is the shape. And:

The trees can be harvested for their crimson red resin, called Dragon's blood which was highly prized in the ancient world and is still used today. Around the Mediterranean basin it is used as a dye and as a medicine, Socotrans use it ornamentally as well as dying wool, gluing pottery, a breath freshener and lipstick. Because of the belief that it is the blood of the dragon it is also used in ritual magic and alchemy.

So it can be a dye, a non-magical healing agent, and something for use in potions.

Even better (having seen Railcraft's cost of time for Creosite oil):

"Dragon's blood of Dracaena cinnabari was used as a source of varnish for 18th century Italian violin-makers. "

So there's something else to protect that wood that railcraft seems to consume by the iron tank full :-).

Nice, @keybounce

I think this is great, but the branches would be nigh impossible to emulate in minecraft. what I propose is that we use the acacia tree gen (the polish thread kind) and give in new logs leaves and saplings all in line with this one.

I think we could emulate the branches. At least in a "close enough" sense. Have the trunk go up two or three blocks, then divide into two, go up a few more blocks, then the canopy. True, it wouldn't have the "umbrella struts", but it would be close. Depending, maybe we could add special "elbow logs" to it?

Possible addition to a revamped biome in a future release.