First of all let me reassure you: the dog does NOT scare the animals away. It can't be smelled. The noises it makes, including barking, is not heard by the animals. One sound that YOU make however ( whistling ) can be heard by them. If you order your dog to stay, it will do so and that won't scare the animals. So basically it's 90% alright on the stealth front. Just wanted to make that clear because I just saw a negative review about that, and that person was wrong so I need to add my input to the subject.
The dog will be useful if you hit an animal but it ran away and you end up in an area with many tracks which can be confusing to newbies.
The "bond" system is pretty much useless. The dog will obey even if you ignore its desires to be pet or fed biscuits. You will very quickly reach the top bonding level anyway, it's not much of a challenge to do so. I never saw the difference between a new and level 3 dog. You don't need to thank your dog in any way after reaching the top level. Don't buy biscuits for nothing, they're just useful when you want to reach the full bonding level.
The dog has some sound issues. Sometimes you will hear it bark in areas it's not located. It will also freeze/get stuck, something that happens quite frequently when you ride a four wheeler.
This dog doesn't bring animals to you. It just guides you.
Overall it's not that useful for an experienced COTW hunter but there is definitely an appeal and use for it if you are new to the game as it makes tracking very easy. I still find it most useful when I go on a rampage and hunt several animals from the same herd.
This is a pretty good DLC. It's not as necessary as the four wheeler which should've been in the base game. So I will give it a thumbs up despite its few issues, and also for the fact that it really offers a DLC-like feature and is acceptable, contrary to the four wheeler...