At present, at least in LiF:YO (not sure what changes beyond claims the MMO has), fighting an animal is very... I'm sorry to say it, but bad. The AI for aggressive animals is very simple: Charge!
To some extent that's fine, but here's the problem: The animals are not stunned by your own attacks, and they are VERY tanky. A single wolf can take a multitude of devastating wounds before they die. Hell, you can LANCE them from a galloping horse several times before they die!
The reasoning behind this, I suspect, is that the AI just wasn't up to the task of actually engaging players in a better manner, and when AI isn't up to the task you can just up the actual statistics of the enemy to keep it a "challenge."
But there's several problems with this. Even usage of a tower shield doesn't allow for actually blocking wolves. Not sure about bears, admittedly. Strategic fights against them simply unviable unless that involves kiting or lancing. If you were to try and hunt a boar or something with a spear, you're liable to get your ass kicked given how tanky they are.
So I suggest the following:
-Remake the animal AI for when they fight. Do not have them constantly charge, but rather be a bit more tactical. They will stay at a moderate distance away, and if possible make it so they try and dodge. They will engage after a missed swing or ineffective strike (more on ineffective strikes later), by charging in the usual fashion and attacking a few times before retreating.
-Devastating blows are likely to cause them to run even if it doesn't bring them to near death, but the more damage they do the less inclined they will be to run even if they do reach near death. Essentially, the closer the fight the braver they are.
-Ineffective Blows: Strikes to the limbs of an animal aren't going to be immediately life threatening. Blunt weapons will do less damage but briefly stun the animal for a fraction of a second if it hits the head. So any damage to the limbs, or blunt damage not directed at the head, is considered "ineffective." It still deals whatever damage it normally deals, but the animal is spurred to a counterattack.
-Devastating blows do more damage, this refers to any damage to the head, or piercing/slashing damage to the chest. All animals should have a certain damage "threshold" where if they are hit in the head for that much damage, they die. Essentially it should be possible to kill a deer in one hit to the head if you're using the appropriate weapon type. There could also be a threshold for the torso but for there it just causes the animal to run for a period of time rather than flat out die.
-Blocking: Have all animal's attacks be able to be blocked. Obviously a bear's "overhead" attack should cause significant damage and even have a good chance of tearing a weapon or shield off the arm of the defender. But at present it seems like there's really no way to properly defend yourself from an animal's attacks other than to not be in melee range. Wolves are the biggest offender, boars are a problem, too.
I believe these changes would make hunting and defending yourself against animals funner and more strategic than "kite, lance, or just have a slugfest." Simply put, make it more skill based.