Hmm. That svcks. I recently transformed and felt that the wolf was a bit weak, since I'm only level 15. The enemies at that point shouldn't be too tough. I know that as enemies become more difficult, the werewolf form is increasingly useless.
I've been using it at level 20+, and it's still pretty good, if you've got the right technique. Any one-on-one fight you will win, as you can ragdoll any anemy outside of a dragon with a double power attack (which is awesome, btw). Grop fights require more finesse, but draugr wights still go down pretty easily.
Of course, it helps that I run with a wolfpack (wolf version of Meeko, and improved wolf familiar)
I also don't have any crafting skills other than alchemy, so my normal weapons are at base damage (plus skill bonus). Beast form may seem more effective that way.
http://skyrim.nexusmods.com/downloads/file.php?id=12687
Have fun.
That's one of the mods to which I was referring. It just changes WAY too much.