This looks like a serious bug to me.
Perhaps others could confirm?

Has anybody tried to make a document link (typically I guess, to place on the desktop as a clickable icon)?

Try this:

Open Gedit - copy and paste a few bytes of text - save as 'AA-test' in your document dir.
Open Nautilus and check your doc dir - yes it's there.

Rclick it - 'make link'.

What you now see is a new file called 'Link to AA-test ' - both are the same file size.

Dclick the 'Link to' file and delete a couple of bytes (2 characters), and save.

My sys is set to make bakups, so I now see:

Link To AA-test~_____ 945bytes
AA-test____________- 943bytes
Link To AA-test______ 945bytes

The above is clearly incorrect cos my bakup is called 'Link To'

Now open 'AA-test' directly, and delete 2 more characters and save.
I now see:

AA-test____________- 941bytes
Link To AA-test~_____ 945bytes
AA-test~___________- 943bytes
Link To AA-test______ 945bytes

It seems conclusive that 'make Link' is not functioning correctly.
Further tests can be made, eg. rename 'Link To' - 'Linq To'.
When you load it in Gedt, top-left informs you are working on 'Linq To AA-test'.

Apart from this being confusing...... it looks like instead of having a small link file, my doc, and my bakup doc......... I now have 4 full size docs wasting space on my HDisk.

This is surely a bug no?