So, after observing and learning from Woodie players and the character himself, I've come to the conclusion that Woodie just isn't good for anything, but he certainly does have a lot of potential to be good again. I think one of the partial reasons he's just not good in DST is how the Werebeaver form works differently from the base game of Don't Starve, sharing the Health and Sanity as Woodie. Granted, that's an absolute requirement, as we would just have another form of griefing. But there are certainly some improvements that can be made to boost the strength of his curse to actually make it viable at the cost of sanity.
Woodie's primary power is his Werebeaver form, gaining a decently strong bite attack, basically acts as every tool in the game, night vision, and 25% damage reduction. But the sanity loss is drastic, and he's just not good in combat due to the armor loss. I'll be listing personal suggestions, and then you can list your own.
-Boosting damage reduction to 65%. Not too powerful, and allows Woodie to use an infinite use armor with better results while in his Werebeaver form.
-Lowering the Sanity loss to around -25 per minute. At -90 Sanity loss per minute, this causes players to go insane very fast. While Nightmare Fuel is always nice, Woodie is unable to heal in his Werebeaver form. -25 per minute would still be punishing enough, but will allow players more time to use this nice tool.
-Have the Werebeaver form heal health for 1.5x of what an item would restore his Beaverness meter by. Logs, for example, would still restore 10 Beaverness, but also 15 Health. Players would be required to balance their meters properly to keep using the form without reverting back.
-As a fun thought to add more to the PvP scene, give the Werebeaver a leaping bite attack against other players from a certain distance, with a cooldown. Another thing that would make sense is allowing the Werebeaver form to pierce Log Suits. Armor made of wood shouldn't be effective against a hulking beaver that chomps logs apart.
Woodie himself is already quite a nice character. It's just his Werebeaver form could really use some improvement. Maxwell already overtook Woodie in log collecting, and then some. The least we can do is give Woodie an advantage outside of his normal form. With the thread done, you are now free to post your opinions and/or other suggestions.