Heh, wow, I have no idea what was going on in this, but the action is great, looked like our hero had all the girls wrapped around his little finger and it was the skinny girl's turn to get thoroughly debased, super nice, thanks a lot for all the effort and sharing :)
That's not how the transformation suit works though. He can't simply summon a dick by pulling it aside of destroying the crotch area. The whole suit and transformation would need to be undone for him to have a penis again, and by then he wouldn't be a loli anymore but would have returned to his male self. So unless Twoerle did some modifications to the transformation, this story really isn't canonically possible.