Here's the thing about werewolves. They are incredibly fun to play if done right. Mines level 34 and here or some of the things I did.
You can start at as any race, but it helps to be a race with a elemental resistance, i.e. Nord, breton etc. Breton works best imho. 25% magic resist + lord stone + alteration perk magic resistance + agent of mara = 95% magic resist. From what I read the magic resist cap is 97. Pretty good if you ask me.
Now for physical defense, put perks in alteration all the way up to stability and expert and use Ebonyflesh. Since the werewolf is considered unarmored, casting ebonyflesh + the mage armor perk + lord stone gives you 350 armor. Granted thats still about 200 armor under the damage cap of 567 (I think its 567, may be 587), put remember that just because you are a monster doesnt mean you are a tank. Remember that there are some effects that carry over from regular form to werewolf form, like the Orcs berserker trait.
note* You could also use dragonskin to meet the 80% damage cap for physical attacks but its only for 30 seconds. Dual casting ebonyflesh makes the length stay on for 90 seconds. Depends on what you want I suppose.
The claw damage scale doesnt compare well in later levels with actual weapons, but the advantage the Werewolf form does have is an extra 100 stamina and killer knockback effects that work on all but the biggest enemies. This allows you to fight dragon priests and draugr high levels pretty easily because of the ability to use power attacks.
I have done all this on mine and I am loving it. I should also note that go ahead and level an armor tree and weapon tree as well just in case there are times that transforming wouldnt be the best choice. I have had a few of those but they are extremely rare, for what I have done at least.