I understand why people are ‘avin a giggle about this statement in the game, but I’d imagine Link would like the feeling of a hug considering he’s never been hugged by anyone. He never knew his mother or father and doesn’t know if he has any other family. The Ocarina of Time Link in particular leads a very lonely life whereas these newer Links always have some group of friends and actual family. (or simply ignore Link's personal life in general)

I agree that the hug was probably very meaningful to him in terms of simply being shown affection/kindness from another. However the "You could get used to this!" line makes it seems like he liked the hug another 2 reasons. Two lovely reasons.