With two short rests per long rest and long rests determining time progression through the game, you're looking at a Moon Druid having 4 wild shapes per day, each one lasting for an hour (or until killed). So they still have to choose - sneak in as a cat and only have one wildshape to fight with? Smash their way through but have to fight every mob on the way? It's a strategic decision every time.

Their AC in animal form is shit. They can't cast spells in animal form. What animals they can turn into is limited by CR.

Each wild shape essentially gives between 5 and 40 temporary hit points depending on form. That's a lot of healing, but most enemies do 5-20 damage per attack. So your bear is probably going to last 2-3 rounds of actual combat, and turning into a bear nukes your initiative along with your dex score, making it hard to optimise them for using their multiattack to take down enough enemies to keep their THP up.