there's a discussion about this in the official forums.
and I think (after a good 10 minutes of reading):
602.2b Only one character can protect each combat. A character can protect whether or not it can be attacked by the attacker. A proposed defender can't protect itself.
Because Arcanite Dragonling is the Proposed defender for the sabotage, it can't protect itself.
http://entertainment.upperdeck.com/WOW/COM...ad/1650930.aspxedit: thats the same link >.< lol
the debate was caused by this rule:
602.3b If a modifier causes a character to “become a defender” during combat, that character starts defending against the attacker and the attacker starts attacking it. Both characters enter combat and are now in combat with each other. A sabotage combat stops being a sabotage.
It was explained then that the "become a defender" modifier cannot occur in this scenario because Arcanite Dragonling is not "becoming a defender" but has always been a defender from the beginning.