I have a general Idea of how this could work.
All pets have different abilities such as
Dog: general, all around package. comes with all abilities but low combat performance (as is seen already)
Cat: Also well rounded, but has a longer "sensor range" and better combat abilities (i.e. it jumps up to slash the face of enemies, and can take 2 hits before limping around) cant sniff out dig spots
Pig: Rather slow, but long "sensor range" does poorly in combat, but can take 3 hits. cant sniff out chests.
Badger: Weapon pet. Carries a small blunderbuss and can support you in combat. (frankly, this would be adorable. a little badger kicking ass with a lil shotgun and running with it holstered to his back.) can sniff out dig spots.
Monkey: Weapon pet. Carries a small mace to bash the knees of enemies. no teasure detecting abilities, but can climb trees and find stuff there. (only if you let it alone enough will it climb a nearby tree)
Parrot: Bonus pet. Makes people hate you less, so you get better prices at shops. can claw people's eyes out.
all pets would be effected by your alignment. an
cat wil turn black and hiss and growl at people, and a
cat will be white and fluffy and purr alot.
An
pig will turn black and grow tusks and try to run people over squealing alot, and a
pig will turn pink and pudgy and oink happily
A bad badger will be all black (they have stripes down their backs right?) and have a little cigar. and a
badger will be white with grey stripes, and try to eat the butterflies fluttering around it's head.
A bad monkey will look like Mojo Jojo, with an exposed brain and turn kinda green and howl at people alot. a
monkey will be nice and play with children and be a shiny brown.
a bad parrot will look scaly and Pteradactyl esque and say mean things to villagers (BRAAAWWK! you suck *whistle*) and a
parrot will be a nice blue and yellow, and say nice things (*whistle* nice hat BRWAAAK!)
I over analyzed again didnt I?