I feel like some of the comparions aren't apples to apples.
And too little value is put on the passive benefits.
10/+1 and 5/+2 DR. (no dispel)
Unless your only point is questage, then, well, enough things have +1 weapon for it to be convenient but not reliable no any means. Against other players... well, i don't know of anyone, -ever-, who intended to go against lycans without a magic weapon, noone is that dumb
As for 5/+2 dr, that too is easily overcome with a gmw from a friend. So no, i assure you, i am not putting too little value on these.
You have multiple attacks: one wounding 3 with regen, one +2 attack. (these cannot be disarmed or dispelled)
Vampiric regen is very unreliable, and not nearly as powerful as people give it credit for. And yes, these cannot be disarmed or dispelled, but if it could be, currently i would use that dispel on someone else who could actually hurt me to a serious degree.
Going into Hybrid form is an action, vs someone else having to cast various buff spells to get +2 weapon or flame weapon or keen. Lycans get all their buffs at once and they cant be removed.
And i have shown in easily understandable examples how underwhelming those buffs are.
In terms of low AC, they get the +4 and also if you play a were cat instead of a wolf you get two more AC, you lose a bit of dmg but its not like with a normal race where you get locked out of good weapons cause you have to go weapon finess. you can get the AC and AB from dex and still have a decent "weapon" that does 1d8 base.
In terms of AC, yes, they get the nice +4, but don't confuse powerful with quality of life. This is easily copied by drinking a barkskin for only 1 less AC. Don't get me wrong, it's nice, but you're heavily overestimating its power. As for the rest, the only non-weak barbs throughout CoA history have been dex based ones which admittedly can be nice. However, you're still losing out of shield AC while being stuck with a mediocre one hander damage with pathetic crit range and multiplier. So that +6 dex AC of wererat is matched by slapping on a +1 large shield that anyone has access to.
I wouldnt go overboard with the dmg boost, but agree it might need a nudge up, more crit would definatly make them scary but that can also be a bit OP.
just some thoughts.
Thanks for commenting and giving your thoughts!