I agree with you on that, the info is there, but it's really light and you can miss it (it's like a little warning telling you that if you're strong it's gonna be bad or something), but i also understand that "lore-wise", almost no one know what the fuck the werewolves are (hence the brothel madame quest to know more about them).
But i also understand the next one
I mean, you can manage to become stronger (or equal at least) than a god (quetzal) but you still can't be stronger than a regular werewolf ? doesn't make sense to me.
That you can't be stronger than the giant being representing the litteral land, i understand, but at some point you have to be stronger than a werewolf, right ?
even with the logic of "pretend fight", you can just make another fight with their "real strengh", even if it's another "joke fight" like the giant, just so that people have an understanding of how strong they actually are.
Maybe it's just me but i think it would be better that way.