Arwink, exactly what I meant
Read a lot of Chinese and Japanese folktales, depending on the story and assuming no "Aesop's Fables"-y stories, they could be reincarnations or Awakened. The reincarnation part depends on which set of folktales you're reading because it ties into the idea of being reincarnated as animals because of low karma, or something similar to that. FYI
As for talking animals being intelligent by default, I consider animals being able to Speak with Humans similar to us mastering another language. Intelligence comes from species, and while applying magic to Awaken it will increase its intelligence, merely gifting it with speech will not.
Pbartender, hmm... I think that the "gods" in Mononoke Hime might be better represented by the Paragon template (OK, I've not seen the template, but the idea as per the description from what I remember of it fits).
Also, I'm not big on Awakening. The idea is wonderful, but I can't envision control of this RP-wise. As you said, Awaken an animal, train it such that it gains Druid levels, then let it Awaken a few others. Pyramid it and it gets awkward. Then again, nothing's perfect, I guess. Offspring remain natural, and gaining enough druid levels to go around doing pyramid Awakenings isn't easy. Plus the Awakened animal won't necessary follow along with Druid training anyway.
Still, very interesting thoughts there... I'm thinking of a scenario: Awakened wolf leading pack, preying on livestock, PCs called in... Oh darn, Neverwinter Nights... forget I said anything
