I’m not sure about protected area. No other Victorian state forests use border=protected_area. There are less restrictions for state forests (compared to parks and reserves) on e.g. camping, wood collection, dogs.

It's mainly open woodland rather than lush forest, but I think that still qualifies as OSM landuse=forest and/or natural=wood, rather than say natural=scrub. The main EVCs (ecological vegetation classes) in the area are Shallow Sands Woodland (882), Low Rises Woodland (66), and Riverine Chenopod Woodland (103).

Going by the Vicmaps outline, Wail SF’s boundary generally follows the east riverbank, which is also the border of the Wimmera River Heritage Area Park. So yes the border could be adjusted, although probably to meet the Heritage Area Park rather than the centre of the river itself.
