Sounds like a bug, but I'll happily take the rep. Maybe the Orcs know of Arhu and think that you must be him (after all, cats all look the same to Orcs).
The Beetle and Spider Statuettes must be for those who need the melee combat benefit. They'd be a very useful addition for a Wizard. The only problem is, I think you cannot use any potions as an animal.
Bug or not, it works <img src="/ubbthreads/images/graemlins/smile.gif" alt="" />.
Yes, you cannot use potions while you're transformed into an animal, also you cannot cast spells since right-clicking will return you to human form. I guess the spider/beetle is useful for mages when they have to fight orcs and the undead knight in the Stormfist's treasury room to save the wizard...