Henge/Transform is useless outside of very specific situations. When you are Henge'd, your hp and chakra bar should be invisible, so you aren't the only tree in the forest with an hp and chakra bar. This would allow people to have an easier time hiding/disguising as NPCs/etc.
Also, perhaps can you make it so non-ANBU do not aggro you while you are henge'd into a friendly for the faction? (Sand Chuunin don't aggro you if you're henge'd into a Sandie, Sound Chuunin don't aggro you if you're henge'd into a Soundie, etc.)