I'm one of the people that really didn't like Dynasty Warriors, as the lacky of variety in the game really hammered in how repetitive the combat was, though I could still see how some people could enjoy it. I gave it a fair shake one a couple of occasions with the tie-in games (Gundam, Fist of the North Star), and the same thing occured, I just didn't like it.
My problem with THIS however, isn't so much that its just going to be a Dynasty Warrior game, it's that because DW is a typically different genre entirely than The Legend of Zelda (DW being pure hack n slash beat em up, Zelda being an adventure game with puzzles, an emphasis on exploration, and collect a thon) That it would (though more likely could, no telling how they're going to handle that yet) take out a lot of the elements that some might consider pillars of the game series.
It's not like Nintendo hasn't done it before, I mean look at Links Crossbow Training, the CDI-I games, spin offs that were typically seen as bad, if not horrible, so they're not exactly innocent in their handling of it either.
I would think that it would be better if they had Link as an unlockable character so he could be a part of a DW game on the Wii U, but because they want to make the focus of it Hyrule, and remove it from being a main Zelda game, it really feels like it's going to be missing so much of what makes the fans, me at least, love the game. Of course theres always passing on it and just waiting for the Wii U Zelda game in 2015, so even if it's a crapshoot, there's always hope on the horizon.