Werewolf questions

[FenrisWulf]

You know, I've never really found Oblivion Mages all that frightening, as long as I'm being careful. Simple solution: switch to Feral Rage, focus solely on the Mages, and kill them before touching anything else. If you get IMed at any point in this process, retreat and play with your Grizzly. Also use Summons to lure out the Knights, away from the Mages (since Mages generally don't follow).

EDIT:
PIs: BStar+Tiamat's still works in one player games, where HPs are manageable. In the absence of items, consider Rabies backed by a Poison Creeper synergy; this will put you low on skill points, unfortunately (you'd probably need to leave Werewolf and Lycanthropy around 10, and max Fury, Rabies, Poison Creeper, and Oak/HoW). Fire Claws requires a much greater Synergy investment, so probably isn't the best idea. There are a few other high Elemental damage weapon (Gimmershreds), and also weapons that cast Decrepify/Amp Damage (Reaper's Toll, Lacerator), which strip PI from monsters. Suggestion: Reaper's Toll on your Act 2 Merc, if you have one.

Resists: In general, yes, they will usually be lower due to lack of a shield. Note to Caaroid: Druid's Hit Recovery is actually pretty terrible, too.

Endgame: I would also likely go with the Bonehew. It's a very fun weapon.