First, magical items, at least the big six (besides Wis booster), are limited in usefulness. The druid is confined to non-combat magic items, or at least items that only boost spellcasting. Our druid has been using magic items that help communication, spot & listen, and other utility items. But he always glazes over when the party is dividing the spoils of war, since it's doubtful anything is useful for him. I have to purposefully leave magic items that may be useful for the druid.
Second, the feat support is limited. There are no feats that specifically apply to the shapeshifter variant. The druid doesn't get enough feats to focus on combat feats, and is kind of left with sub-par feat choices as levels progress. It's even hard to adapt many of the current collection of wild shape feats to work for the shapeshifter, since many require expending wild shape uses and the shapeshifter has, well, an unlimited number (actually 86,400 swift actions per day).
Those caveats said, it's still a wonderful variant and I prefer it over the druid as written. Still, some more feat support and perhaps a few targeted magical items would do wonders.