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I love this book too! The Shattered World by Michael Reaves. Without a doubt.

Book cover

A thousand years ago, the world was broken in a great cataclysm; now people live on the fragments, flying between them in ships made of the skin & bone of dragons. The book follows the interweaving stories of a thief, a couple of wizards, and various others as events are set in motion that will take them on perilous journeys to the far reaches of the world with far-reaching consequences.

Matching details from my memory:

  • Floating land masses in breathable space
  • Werebear/lycanthrope/shape changer thief.
  • Sexy deadly woman wizard antagonist
  • Botched jewel heist

But honestly, you must not have gotten too deep into the book because the best parts you don't mention, nor will I because of spoilers.

And it was 1985, not the 70s!