Earlier on, before TP's release on the Wii nearly a week ago, the mention of Link being able to transform into Wolf Link in SSBB often brought up a comment that basically say they don't think Link is able to turn into a Wolf by choice, but when in the Twilight Realm, but now, people have seen that when he get the Master Sword (which is Link's Sword in SSBB) he can change from Human to Wolf and Vice Versa, anytime.
I've only read what I've known, I haven't been able to nor will be able to until Christmas Day, so late December, the 25th, a month from now, then I could see it all myself.
Anyways, point is, when Link finally gets the Master Sword in The Legend of Zelda: Twilight Princess, he can freely transform to and from Wolf form, and the Sword that enables it is his weapon in Super Smash Bros. Brawl.
Regardless of how the mechanism works in TP (might wanna've used spoiler tags, btw), there's no need to saturate a perfectly good character with a transformation alter-ego like that. Zelda got raped in popularity thanks to Sheik, and now ZSS is pushing that same envelope (she's looking a little too competent for what's in its very premise is supposed to be a weaker version of Samus). Personally, I'm not even hoping for Sheik's return in Brawl, and I pray for Samus's sanctity...unless players are going to actually bother to switch between the two characters from time to time (rather than the exclusive Sheik play seen in SSBM tournaments), transformations are pointless; they might as well be seperate characters anyway. They also give more recognition than is due to the alt forms (Sheik is all but outdated now, and I doubt Wolf Link will become a staple of the series either).
What I wouldn't mind would be if players were given only limited control over transformations. For example, Samus could be given a supremely potent Super Smash, but be forced to be in a definitively weaker state (enter the true nature of ZSS) for a time afterwards before reverting to the more competent, sutited form. Another idea that's been floating around in my head for a while now is transformation as Super Smash moves, specifically in regard to the prospect of Ganondorf transforming into Ganon (both recurring, equally significant entities in the broad scope of the Zelda series). I just don't want another Sheik fiasco this go-'round.