[Aleph]

That's cool if it comes down to preference. I just don't see the edge; the Kraken needs to spend a round casting personal regeneration, so that's another damage shield that the Wyrm could have up, and with the additional item slots (both inherent and due to lack of need for poison protection and air breathing) and lack of need for Nature paths you can produce more Wyrms more quickly, so I think we're back to a conversation similar to the Mictlan bless strats. Some like super quality, others are happier with high quality in quantity.

Edit: Or a Carrion Dragon, which has a lot of the properties you like in the Kraken but more so - 8 attacks per round before quickness, recuperation, fear +10 - but can also raise the dead and when Gift of Reasoned has the benefit of already having 1 level each of nature and death, allowing you to avoid the 1st point premiums when empowering.