By the rules, I would say no.
It would make a reasonable house rule with some minor tweaking.
I like the general concept of the 3.5 companion progressions, but a wolf is not much of an ally in combat once you hit ~8th level unless you Animal Growth it. But an Animal Growthed Black Bear or Dire Wolf is far better.
I think they are unnecessarily stingy with HD. There is nothing wrong a higher level druid having a plain wolf as a companion with equal HD.
I play a low level gnome druid. If something bad happens to my wolf companion, I am going to "trade" up. I treat the companion with at least as much care as my own PC, but its armor class and hit points will not keep up in the long run...