It's a shame there's no incentive to do anything involving releasing wolves. Payout for nearly everything on LW is insanely low and not worth the time. A huge driver for the economy of FR is leveling dragons and exalting them for profit, but that's not worth it on LW, so nobody wants to buy the junk wolves. If I leveled a wolf to 10 and released it, I would probably make more money selling the materials I got from campaign rather than from the wolf itself.
I think "the site is new, it'll get better" is a valid thing to say, but I think it's more like "the site is new and we don't yet have any way to make money off of wolves besides player to player interaction, and we're stuck until we do". I’m not sure if the site’s going to rebalance on its own, not without the help of a system that incentivizes releasing them more. People are just going to keep breeding more and more wolves (and so rapidly too) and eventually nobody's going to want to or be able to buy them.
FR incentivizes exaltation with dominance, which gives you additional daily rewards, and actually gives a reason for junk dragons/wolves to exist - as fodder.
Truthfully, this feels like something that should've been ironed out in beta and wasn't. Lots of economy suggestions were available and I don't think many were implemented, cough, excessive moonstone expansions. I agree with OP that the gameplay is not substantial enough for the amount of grinding you have to do.
Raising the base payout would be nice since it’s very very low, but too much and it could just end up like the "add a third lane to fix traffic" kind of thing. We need a good reason to release wolves. I would so much rather have a system like that on its way than more professions. Otherwise, we've just added another lane.