I love the setting and the eerie silence, it's creepy and beautiful.
Gameplay-wise, I think it would be scarier if you spend more time teasing the wolves instead of showing them on screen. It's scarier if you don't know which direction the threat is coming from, but you know it's nearby, rather than having 20+ wolves rotating around you constantly like a merry-go-round. Maybe you can do that with footprints, directional audio, and wolves darting across the screen at the periphery of your vision. Just enough to freak you out.
I think you should have the ability to turn off your torch. It puts you more at risk from the wolves, you can't see very far, but maybe it allows you to move faster (in addition to conserving torches). That way you have a nice risk / reward thing going. Movement in general can be a little bit faster, the character is too sluggish to control.
This has so much potential. Really good stuff!