You might want to get a referral
to a specialist. There are references on the internet to oblique corrective osteotomy, which seems to be another way of saying that they take some of the bone out, while stabilitzing the rest. But only a specialist would be able to tell you if your dog had a severe enough case where surgery would provide a great improvement or not.
Also sometimes dogs will bite at their paws if they have an allergy or infection between the toes. Sort of like atheletes foot. If the area between the toes look raw then a tube of Panalog works wonders, along with Bendryl.