The mere fact that khajiits look bestial doesn't mean they are, infact if you want to play a khajiit AS a khajiit it's the total opposite to a beast if you think about it, A khajiit is cunning and stealthy while a werewolf is strong and draws a straight line between it and its victim.
ok but pretend your in a dark cave and a khajiit goes into the shadows, then pounces on you, you manage to survive and as you create distance he starts shape shifting and turns into a were wolf...
now picture fighting lets say an imperial warrior, who out of nowhere shifts into a werewolf
which is more dramatic and intimidating, the lion looking thing turning into a wolf
or the human looking thing turning into a wolf
its not the play style im concerned with, its the appearance