I'm kind of on the fence on the Zelda spin-off myself, because I have past experience with Dynasty Warriors. I'll give this one the benefit of the doubt, because Nintendo will likely over see development, and may make sure it's not as repetitive as most Dynasty Warriors games (even the Gundam ones get kind of old, and I love Gundam). It seems like it's just a low-budget side project to hold Zelda fans over until Zelda U. It may not even be a retail game. I don't expect it to have much of a story either, if any. As long as it has online play (which I'm hopeful for, as Dynasty Warriors generally does have that, including the Gundam series), I won't complain too much. It'll at least be enjoyable.
I'm kind of curious as to what the Zelda DLC for Lost World will be like. I'm thinking it'll be based off of Wind Waker due to it fitting in with Lost World's art style. But whatever it is, I hope it's a big, open 3D level.