This thread is still going on? Funny!
There is no real proof for Link to be gay, and neither is there real proof that he's straight.
But I find it very amusing how desperate some people are to proof that Link is straight.
And I don't see how Link's sexuality would affect anything in the game. There were never scenes like kissing or anything, most of the relationship that people think exist between Link and whatever character have no real proof to be romantic. You could easy dismiss them as friendship. Just imagine Ilia would have been a boy, everyone would have dismissed theire relationship as friendship.
Link never shows romantic feelings in the game, thus him being gay would change absolutly nothing.
There could have been gay Links and we didn't even notice because Link never acts out his sexuality, and I bet thats going to stay that way.
So does Links sexuality matter? No.
I couldn't care less whether Link is gay or not since it will not affect the game at all.