I think it sounds really cool and heroic, but I agree that it definitely sounds like something an American otaku would call himself, rather than an actual name. I'd like to see it used on actual Japanese men.
This name is overused in Japanese video games to such a ridiculous extent that TV Tropes actually has a big list of characters named Ryuu or variations. Something tells me that Street Fighter is to blame. Honestly, I'm getting a little tired of hearing this name constantly. It sounds like something an otaku would call themselves, and I doubt it's really that popular on real Japanese men. People really are just using it for its meaning - why not try something with a little more life to it?
It just sounds like the ridiculous name of a fan character, usually coupled with other names. It's supposed to be simple and mysterious. I think it's overused for its meaning.