I'm honestly pretty bummed at the idea that Hyrule might end up squeezed into that spot between Mushroom Kingdom and Monsters.
A compact Mario land with even more compact sub-lands based on adjacent IP like Donkey Kong, Luigi's Mansion, or Yoshi's Island makes a lot of sense and fits for the IP, which is often associated with tight, grid/pixel-based level design.
I believe Hyrule deserves more space than DKC or Luigi's Mansion. It shouldn't be an overly tight walled garden like those. Especially if they base it on Breath of the Wild like the concept art or Twilight Princess like the banners in Epic, it should be a sprawling and at least semi- explorable space. It would be enough to use the current structure of Lost Continent imo. I think you need that level of space to get across the feeling of a Kingdom or village.