Hmm, it's interesting. I never heard anyone voice any apprehension about the Vargr before this thread. My gut reaction is that they seem like the kind of thing where either you accept them, or you don't, and that's kind of the end of it.
Trying to think here ... being a dog lover, I have to say that I never found the idea laughable or otherwise "implausible" or a deal-breaker for any gaming group, but then again I never really understood why it would be.
I think the thing that might bother me from a "background" standpoint is this; of all the worlds that had sentient/sophont species, why did the ancient Droyne pick canines / lupine / canidaes for uplift? If we go for the more recent theory of how dogs evolved to co-exist with mankind (exclude the Russian experiment, for those in the know), then it would seem that the Droyne saw that the canine were far more sociable than a lot of other animals, and chose them for that purpose. The flip side of the coin is that they still have some wolf like instincts that grate with human empires that have to deal with them.
And that's how I always thought of them, and presented them to my groups.
The Aslan, on the other hand, ... eh, originally I put them out there as "feline" like, that came with learned contention behavior with Vargr; a-la cats and dogs to liven things up -- but later on I presented them as truly alien and "samurai" like.
I think there is something to be said for some writers trying to take shortcuts when inventing aliens; i.e. the Kzinti derived from tigers and what-not. And I guess there's that vibe coursing with the Vargr. But to me, the grey-wolf on the cover of alien module 3, is how I always saw the Vargr. Kind of dashing, noble, cunning, not so mercureal as described, but ... almost Viking-like in some ways, knightly in others, with a zest for life, and, like real dogs, weren't afraid to show appreciation, and were loyal.
Some of the aliens I thought that were laughable in Traveller were the talking Dinos from GURPS Traveller, or the "spider people" from T4.
Hmm, I guess what I'm saying is that I can see the disappointment with Vargr, but it never really occured to me to look on them as being silly and rediculous.
Oh well.
Does this need to be fixed?