The blue wolf is a Contributor character, one of the submissions taken from members over on my Patreon. He seems weirdly cognizant for a number of reasons, most of which will be explained when I am able to continue his storyline.
Interactions and bespoke dialogue for Good Wolf is something that's been heavily suggested and is for sure going to be added. Current blockers are in place solely because I didn't have the time to go over and redo every single line of dialogue the player character has to make it line up.
Wolf self-sabotage will be expanded on the current quests and side content (one idea that I wasn't able to implement was potentially 'hesitating' when triggering the Refugee scene) and will have a big culmination with you having a spiritual fight very similarly to the Holy district quest, albeit with more nuance.
A 'version' of the cure that only heals the mind is something that's already implemented in the form of the Experimental Cure, but not something I'm super keen on exploring massively. There will be a lot of unique curable wolves you will be able to unlock by progressing the Wolf questline first (Revan, Titanus, Nathaniel), but it will be very restricted to keep playthroughs feeling unique and the game replayable.