Hmm. Yeah, there's the feel of power gaming around the edges there. The bigger the benefits he wants, the stronger the downside has to be. The ability to shapeshift is a core Druid ability and not only is it paired with a lesser spell list I'd guess the werewolf form is supposed to be pretty butt kicking. It will need very careful balancing. Maybe something like a Shifter from Eberron would be a more balanced way to approach that?

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.