I don't think your three listed concerns are a real issue because they can be solved by magic and magic items your druid player can easily provide:
Aside from the obvious temporary solutions (casting Speak with Animals on listeners or Tongues on the wolf itself), your druid may purchase a Circlet of Speaking or a Ring of Eloquence to solve the problem in a more permanent manner. I suggest the Ring, as it specifically mentions its usefulness to druidic wolves and gives 4 languages cheaper than the circlet gives one. Of course, the druid may end up awakening the wolf at some point, such as through prolonged use of a Collar of the True Champion which would remove this issue as well, but make it no longer an animal companion.
Doesn't Have any Magical Powers
It can talk to wolves, and presumably other canines. That's pretty cool. Plus it can take a Use Magic Device skill if its feeling left out in terms of magic, and it can certainly fill some magic item slots. But really, its chilling with a pet druid. That's pretty good access to magic even compared to half-casters like a ranger. Yes, mundane classes are weaker than magic using classes, but they 1) don't have to be completely without access to magic and 2) exist. Your wolf won't be too much worse off than the party rogue, for example. Besides, a small power differential isn't going to ruin your campaign if no one gets jealous. The player looking to play the companion probably isn't looking for optimized power anyways.
Has Few Ways to Interact With Others
This is really solved by the wolf rapidly being able to talk, and is basically just a restatement of your first issue.