IMO the Wolf idea is really cool, Nintendo always cook up something new and controversial for every Zelda game and Twilight Princess is no different. I'm not really worried about whether or not it will be implemented properly as I have every confidence that Nintendo will pull it off, just like TWW.

My thoughts on the Wolf Transformation are :

In ALTTP, when Link enters the Dark World his shape resembles a Rabbit (without the Moon Pearl) perhaps this will be similar. I also firmly believe that Midna (the strange looking creature riding Wolf-Link) will be a playable character in the Twilight world..

Very cool, but...this is when..........(storyline)?

And does this Link is another rencarnation?

Shacrob

Apparently the game is set somewhere between OOT and TWW. I believe it has also been confirmed that this is not going to be 'Link The Hero Of Time' but an entirely new Link, somewhat like TWW.

The best man won, well done Barmy_Brat!

Only two days to go before Zelda is unleashed upon the public! I cannot wait to see what Nintendo will announce/show at E3, man I'm just too excited! Need to relax, need to sleep....