I made a small research to see what this "Wolf RPG" was.
There is a youtube chain with plenty of video showing how the program can be used to make game.http://www.youtube.com/user/sakurabayuki880
First video is there : http://www.youtube.com/watch?v=Qtf-csK7Q5s&feature=channel_video_title
Also, the "nickname" for the program is Udita (ウディタ), a mix of Japanese "Wolf" and "Editor" I guess.
Using the nickname, I searched niconico douga to see what it could do.http://www.nicovideo.jp/search/%E3%82%A6%E3%83%87%E3%82%A3%E3%82%BF?track=nicouni_search_keyword
The preview pictures should give you an idea of what could be easily done.
I am not an expert in progammation so you might have to consider that while I state my opinions.
That being said, I would believe that making a game
at least on the level of "Lufia and the Fortress of Doom" would be possible based on what I have seen.
Also, I would like to point out you attention to this video :http://d.hatena.ne.jp/video/niconico/sm12706191
From what I have seen here (especially the boss fight) and elsewhere,
it seems possible to pick pictures and music from outside source to put them in the game you make.
So it would be possible to make something as good as a Snes Final Fantasy or Romancing SaGa,
at the very least graphically and musically-wise.
You could even do it without ripping stuff...
...assuming you got the patience/talent to do so. X D
Also, it is possible to do more than just standard rpgs with the program.
For example, it seems possible to do Touhou-like shooter games :http://d.hatena.ne.jp/video/niconico/sm8384516
There's also a page on the main website that show videos of what the program can do :http://www.silversecond.com/WolfRPGEditor/First.html
There is also a list of games there that were made with the program
with what seem to be links to download them :http://www.silversecond.com/WolfRPGEditor/GameList/memberlist.cgi?
If you know a bit of Japanese, you might want to give it a look. ^^