Yeah, the dog does pretty well. Things you can do:
have the dog sic fleeing enemies, or do it in battle to interrupt enemies
hunt game (hares and deer are easiest; boars are hardest)
find interesting things, like crosses, graves, etc.
growl whenever enemies are near, even if you can't see them (a.k.a. hiding in bushes)
with a perk, you get a +1 charisma bonus for having a dog
You don't even have to feed it, honestly. I haven't fed it in weeks, and just checked its obedience level: 100! This also means that, since you can't take ever Houndmaster perk, you can just ignore the "Faithful Companion" one (get obedience bonus when it returns after getting its ass kicked in battle).
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Take me down from the ridge where the summer ends And watch the city spread out just like a jet's flame