Was that before, or after SNW for Kidzone was finalized? If they were still working on Zelda and Pokemon before they got shelved; it'd definitely raise some questions.
That said, who's to say it wouldn't work? Out of any of the Zelda stories that could work without it feeling like Hogsmeade, it'd actually be with the content from Windwaker. It's different, from the rest of the series. In a way that could lend itself quite useful for UC. And as it is, plans evolve and change. I doubt it'll be anything like what was proposed back when they were pitching Nintendo at Universal, back in 2014-2015.