1: I know not of Kovu and his intentions. All I know that when he quit working with Feralheart, he took the source code with him. I don't know why he left, either.
2: Aro'Kai is another game similar to Feralheart, but you are allowed to be many species such as Dragons, Griffins, Owls, Bears, Canines, Felines, Deer / Moose(?), and I think there are moar but I am unsure. It is still under construction, and its release is uncertain at the moment.