why sauron cant breed werewolves/dragons?

[mhagain]

Originally Posted by Belegorn

It seems Sauron was doing other things. Making the trolls more cunning, the introduction of a new breed of trolls, the Rings of Power et cetera. It appears that Sauron may have had a hand in the making/breeding of Orcs himself. Melkor came up with the idea, and sometimes he'd grow frustrated in projects which Sauron would complete.

That's pretty much what Tolkien himself says in one of the Myths Transformed essays ("Orcs"):

He thus was often able to achieve things, first conceived by Melkor, which his master did not or could not complete in the furious haste of his malice.

Of course Melkor didn't have his final and fullest "Fall" until after he'd destroyed the Trees and corrupted Men, but the whole chronology and storyline of this time is a complete mess.

Going by the published works there's a huge period of time when Melkor was in captivity and Sauron would have had command of the Orcs, and it's also probable that it was actually Sauron who was the one who "appeared among us, in our own form visible" (because Melkor was either in captivity, or had already become the Morgoth, by the time Men awoke). Like I said - it's a mess.