I'm usually 1000% behind Tynan on everything he does and his logic but this is the first time I flat out disagree. Many animals in real life give milk and wool. Muffalos were offset by their large need for food.
Muffalo were the first animal in the game so for historical reasons all the features ended up attached to them in the beginning.
They gave milk. They gave wool. They were great fighters (tanks). Not too hard to tame. Pack animals. And zero effective food need (they just eat the natural grass).
They overshadowed almost every other animal and really reduced any meaningful choice people had; I'd never design something like this from the start so upon reviewing the animals together it was clear they needed to have some clearer roles going forward.
Some animals will be great for caravans. Some for fighting. Some for mood boosts. Some for meat, some for milk, some for wool. Some will be multirole (like the muffalo is now). This work is still in progress but it's a step in the right direction.