Making Link transgender would go completely against the whole idea that people who are transgender are simply naturally that way (which, incidentally, I agree with).
Better to have a new character that is transgender, rather than changing an existing character. And yes, I'm aware that most of the time, Link isn't literally the same person... but it's the same soul reborn each time, it's the same character. Making Link transgender would be changing Link's character, not just the specific instance of it.
At least, that's my view when it comes to the idea of "making Link transgender". It's worth noting that Link's genetic sex isn't ever really established. Many people notice that he has an effeminate appearance. Who's to say that Link hasn't been transgender this whole time? After all, if the Triforce Universe is more accepting of transgenderism, perhaps everyone identifies Link as male because he has chosen to identify as male, despite being genetically female. How would you be able to tell the difference? And ultimately, that's a far better message to send than "we made Link transgender, so now keep an eye out for all of the references we put in to make it clear that he's transgender".
To put it another way - if Link is transgender, how should that change the game? Should other characters treat him differently? What kind of message would that send? If it's purely about the background story, though, why bother having that at all? None of the others speak about Link being born male.
As for the argument that it would send a message about the "white male"... if Link is transgender, then either way you cast it will cause issues. If Link is genetically female, then it's "even when they're genetically female, they have to become male to be a hero". If Link is genetically male, then it's "even if they're transgender, they still have to be genetically male to be the hero". Wrong message either way.
If they want to be more inclusive, they should include Linkle as an optional substitute for Link, and otherwise never mention whether they were born male or female. Let them be the link between the player and the game, and so those who are transgender (or anyone else, really) can view Link or Linkle as being transgender like them. Being transgender shouldn't change anything in-game, anyway, if it's about inclusiveness.
I would like to see a new franchise where the lead is transgender officially, though. Again, if the message is supposed to be a good one, then there should be no way to really tell within the game, as they're treated no differently from others of their "chosen" (for lack of a better term) gender. Perhaps design the character to have slightly more of a body shape resembling that of the genetic sex (so if it's a transgendered male, perhaps they have broader hips and a narrower chest than typical males).







