A lot of new Werewolves say the damage sucks. The damage doesn't suck.
This is done with top notch weapons. My dagger and mace are both blue and at my level, both with damage enchantments. My bow is a purple, my level as well. In fairness, the weapons' levels are higher than the giant's level. I was using Flurry often with the daggers, which is the highest-DPS skill in dual-wield (475 damage for me).
If you want the full effect of Werewolf, get to rank 10 (Easily in an hour or so of grinding) and get the passives. Don't get to rank 3 and complain that it's bad. Werewolf has its issues, the damage isn't one of them.
https://www.youtube.com/watch?v=jynN_L-xVCY