You know... after looking this over a bit more, if you're not allowed to advance the dire badger by 1 HD for the size boost, werebear is actually a lot better...
Yeah, it's 3 more HD, but it has a lot better stat mods and large size and the Rage from the badger is only available when in animal form (Ex special attack), anyway.
If I were redoing this from scratch, I'd probably go with that. The only real drawback I see is the alignment requirement basically precludes you from taking barbarian for pounce. However, if you'd started out as a barbarian before being afflicted with lycanthropy, you'd lose Rage but still keep Pounce. You basically gain +12 to Str and large size for those 3 more HD (or +8 Str and -4 Con for the bear, if you count the badger's rage bonuses).