There are probably scenarios where inactivity is a better option.
If the wolf or wolves can form a nucleus for that something and there are no other credible options, inactivity is better. The wolves also vote as a secret bloc - if they're good, they can determine the outcome of a "do something" vote (although if they're not as good as the village, this reveals them pretty severely).
(This is my experience with the game, not a worked solution or anything.)
If a majority of players agree that a random player needs to be lynched, this is possible. Everyone picks a number from 1 to N, where N is the number of living players, and you add the numbers mod N and then lynch the corresponding player. This is robust against colluding wolves: even if exactly one person picks a random number, the sum will be random.
Of course, I don't see this strategy being adopted, because it arguably takes the fun out of playing.
There is already a post related to this meetup but it concerns a discussion which took place after I had left so I will write about the games of Werewolf. Please post your thoughts too and correct any inaccuracies.
Thoughts:
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Games:
1 GM: {Douglas}, Villagers: {Ramana, Jon, Jonathan, Alexey, Ai}, Werewolf: {Thomas}
Jon mauled. No-one lynched. Jonathan mauled. Thomas lynched. Villagers win.
2 (Seer added) GM: {Douglas}, Villagers: {James, Jonathan, Alexey}, Werewolves: {Thomas, Ai}, Seer {Ramana}
Ramana mauled. Jonathan made Sheriff. No-one lynched. Alexey mauled. Ai lynched. Jonathan mauled. James lynched. Werewolves win.
3 (Sheriff's deputy and wills added) GM: {Douglas}, Villagers: {James, Jonathan, Ai}, Werewolves: {Ramana, Alexey}, Seer: {Thomas}
Jonathan mauled. James made Sheriff. Ramana lynched. Thomas mauled. Alexey lynched. Villagers win.
4 GM: {Thomas}, Villagers: {Douglas, Jonathan, Alexey}, Werewolves {James, Ai}; Seer {Ramana}.
Ramana mauled. Alexey made Sheriff. Douglas lynched. Alexey mauled. Sheriff passed to Ai. Jonathan lynched. Werewolves win.
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This post was partly motivated by this comment in the google group: