I'd probably test a small quilt sandwich to make sure that the machine needle doesn't punch the wool batting through in the back. If it doesn't do that, it should be fine for machine quilting.
It's very important not to agitate wool batting or expose it to temperature extremes in the wash. Wool fibers have lots of little hooks on them. Agitation (such as in a washing machine) and temperature change (as in a dryer) cause these hooks to find each other. The result is that the batting "felts", shrinking drastically and becoming much denser in the process.