I think wolfspeak as we know it should not exist. If someone wants to make up "cute little words" for their wolves, why not turn "wolfspeak" into its own wolf language instead of completely butchering the language we used to speak? Warriors, for all its greatness and all its flaws, made its own "cute little words without changing the meanings of real words in the greater context. When a normal, everyday person hears "fresh kill" they think "freshly killed." When a character in the Warriors world hears it, they think "food." These two elements are kept entirely separate, and every reader knows they are not part of everyday language.
If we were to turn "wolfspeak" into something similar (without flat-out ripping off Warriors, of course, though I can see how practicing that way might help get the ball rolling), then it would not be a big issue as a whole. I roleplay in a wolf pack that uses their own terms for things, yet we don't butcher the English language (or the American one, if you prefer). Thus, I agree with Silhouette on this. "cute little words" are not something we should reinforce to be correct. They're something we should separate from our own language entirely as something fictional to be used in roleplay or storytelling.
As for roleplays being "segregated into such topics," most roleplay is naturally segregated without the negative blacklash that comes with that terminology. If someone is hosting a lion roleplay and you want to be a wolf, naturally your roleplaying situations are going to be segregated. I'm not saying you can't have a "free for all" style RP, but you get the point.
As a result, most of us experienced (and several newbies) roleplayers don't wish to associate with butchering the language we use to communicate, thus we avoid and detest wolfspeak. There would not be so much backlash against it if most (not all) of the people who are pro-wolfspeak didn't shove it down our throats and claim they were being literate (or more literate), when the very definition of the word "literate" is "someone who can read and write." Even five year-olds are literate. They may not read and write very well, but they still fit the definition of the word.