Joel,
The air dryer should be working OK, if you do not get any water from the tanks when you bleed them. Some coaches do not run the bleed lines from the bottom of the air tanks, so to properly bleed them, you need to go under the coach and bleed some air from the bottom of the tank, by loosening a valve or plug in the bottom of the tank. This probably only needs to be done once or twice a year, and if you get water, service your air dryer.
However, if your air compressor is cycling every minute or two, that is excessive. You should check the compressor and air dryer purge valve for proper operation.
Your coach only uses compressed air for the suspension, and as a boost for the hydraulic brake system. Since your coach has hydraulic brakes instead of straight air brakes, it will use much less air volume with brake application, than a coach with air brakes, but it also has a little smaller air tanks than the air brake coaches. However, with an eight air bag suspension, it will use a good bit of air, when it adjust the ride height.
Gerald