I want to see Nintendo continue the product line they started with Wind Waker which went on to spawn Phantom Hourglass and Spirit Tracks on DS. This series is great, in my opinion, and I'd love to see another entry on 3DS.
In the mean time, I too want to see a more realistic graphic style in the next console Zelda. The look of the E3 demo is fine (loved the superb lighting!). I just want a world and characters that are supremely detailed, in terms of polygon counts, textures and visible armour, items and weapons. Proportions don't have to be realistic, but the sheen that covers the world needs to be. Like someone else has said, Twilight Princess in HD is a good starting point, but ramp up the detail times a thousand and blow us out of the water with its graphical fidelity. That would definitely make me happy.