I would argue Zelda could exist in multiple lands....or multiple time periods.
This could very well happen if it turns into a Lost Continent replacement. Like that original island, it could have multiple themes.
He seems pretty certain Zelda will still be included in phase one. As does a lot of media outlets right now.
Setting a lot of fans up for disappointment on that front if it's not going to be included in first wave.
Personally I still think that it's a perfect candidate for its own land and a larger attraction down the road than what's in that old proposal.
Nothing in the teaser video do we see anything remotely Zeldaesque. And the more recent concept art has been Mario and Donkey Kong, so I think the smart betting is on Zelda being out, at least for Phase One. Why anyone would keep spreading that with almost no information to go on is beyond me.
In fact, I think Lost Continent turning into Hyrule is a safer bet than anything Zelda-related going into the Mario phase. That island is falling apart, with two attractions that nobody cares about, and the only real options Universal has right now to replace it are Nintendo or Dreamworks. Zelda could be plopped down in here with very little work, beyond great attraction ideas. Sindbad is so generic that he could easily be replaced by Link, and they'd just have to change the Arabian facades into something appropriately Hyrulian. (Poseidon would take a little more time to turn into an actual E-Ticket, but the facades would need far less work since crumbling temples are kind of a Zelda thing. They would just need to de-Greekify the courtyard.)
If I were doing it, I'd demolish Mythos and the Poseidon statue ruins when I started construction on KidZone. I'd divert traffic closer to the Poseidon entrance - keeping it open - which leaves a nice plot of land on the lagoon for an E-Ticket housed in a fantastic temple that would be seen from anywhere on the lagoon. A few months from finishing this, I'd close down Sindbad and the Arabian section of Lost Continent, re-theme it all, and open a Hyrule Island at the same time I opened Super Nintendo World. They could advertise "Nintendo in two parks!" and they would be able to do it without affecting visitors much. No sit-down restaurant for a couple years and no time-wasting Sindbad show for a few months?Done and done! The new land would open with Poseidon behind walls, which would be replaced with another great attraction for Phase Two. If the show wears out its welcome quickly, then Phase Three can be tearing that theater down for a third attraction.
After the lukewarm reception of Skull Island, IOA needs something in the win column. One of the rumors getting more heat is a Dragon Challenge replacement, but I have an issue with closing down two attractions right now. They should get Hyrule built and then closing down those coasters - or Toon Lagoon for a retheme - will go over much more smoothly.
It's going to be an interesting five years...