I thought Fledge in SS already had a crush on Link, heh, heh! Okay, so it's interpretable, anything from hero-worship/looking up to an upperclassman to possible crush, depending upon interpretation...
My feelings are mixed. So far, Nintendo has given us a lot of "camp" characters (the Carpenters, Ghirahim, Fyer and Falbi who, while canonically business-parnters somehow became partner-partners in my mind), but these flamboyant "camp" types carry some unfortunate implications. I.E. If they made a canonicially for-sure gay character, would they do it in a way that's realistic and sensitive to a minority? From what I read, Japan, much like America, Britain, etc. is a very heteronormative county and people don't always do well if they're asked to write what they don't know.*
On the other hand, having a gay character for Link to interact with as a friend with possible player-interpreted romance/non might be a very inclusive thing, seeing as LoZ is played by many different kinds of people, some of them gay, and some of them not-gay but of minds that enjoy possibilities and different directions for characters. Slash and yaoi fans don't need *jack squat* in the ways of canon to go ahead and interpret things the way they want to, anyway.** But having such characters may give a more inclusive feel and add to the diversity of Hyrule.
If it's done right. There's so much potential to unfortunate-it-up, though.
I also don't want it to ever become canon for Link, because despite some of the romancy-hints between him and various characters in the games, I like the idea of Link being "The Link" as in- "He is ultimately whatever the players want him to be" this means Zelda or Peatrice or Malon or Saria? Or Colin or Fledge or Shad or Shiek? Have fun, player, since none of it is strictly canon.
*Collary: This is much of the reason why I don't tackle the "issue" much with my own fiction writing. I'm more or less an asexual who doesn't understand sexuality much anyway, and "normal" het-side more than anything else. I also come from a homophobic background, as in I used to have a conservative religious attitude toward it (which is why I don't utterly demonize conservative religious people over it, I understand because I've been there). I do not have this attitude anymore, mostly because I have gotten to know what some might call an "alternate theology" for my general religion and have met gay-Christians online and stuff - the point is, my attitude has shifted and having had interactions with and getting to know actual gay people (even if only in an online setting), I'm so afraid that I'll "botch up" writing characterizations for fictional gay characters and do a disservice to the gay community that I kind of avoid the issue altogether or just have a mention of it without really exploring it. This may change if I feel confident to tackle "important issues" and get enough encouragement, but I think "writing what I know" (which means keeping it "gen") is the safe route.
**As a general not-often-broken rule, I dislike slash and yaoi in fandom precisely because of it "not being done right." Not only are the slash-fans apt to make *everyone* in their fics gay (including people who are happily heterosexual or are entities without sex organs in canon), the stuff most of them write (that I've seen) plays out like the *worst* of melodramatic/angsty/stupid het fics. Most of it is written by heterosexual young females, as well. I used to be a part of an Anti-Yaoi livejournal and some of the most prominent complainers were actual gay young men who disliked being asked embarassing questions about their personal lives by yaoi-fangirls. They also tended to laugh at the lack of realism in most of these kinds of fics. The point here is, this is such a sensitive thing and easy to do wrong that even people who are *enthusiatic* about it often do it dead wrong.