Yeah this will defiantly be a fun addition to the game.
Think of all the possibility you can exploit or changes you can do on quests, but I may be going to far as it require allot more texts and dialogue options :P
For example change into a cat and get passed the guards or hide from players by changing into a rock. Though what Swen explained seems very awesome especially seeing your arms turn into tentacles or wings added to the characters and so on, this is defiantly a game changer.
