From the new Zelda: Art & Artifacts book:
IGN Article
So we can thank Lord of the Rings and the stupid fanboys crying about Celda for Wind Waker 2 being cancelled.
Hey Nintendo... maybe come back to this after Breath of the Wild?
Nintendo shed some light on The Legend of Zelda: Wind Waker 2, a sequel to the then-divisive cel-animated Zelda adventure, would have taken on a more land-based setting.
The new information came from an interview with artist Satoru Takizawa, design manager and enemy designer of Wind Waker, in the Japanese edition of The Legend of Zelda: Art & Artifacts (called The Legend of Zelda: Hyrule Graphics in Japan). It was translated by Nintendo Everything.
When asked about the shift towards realistic art direction for Twilight Princess, Takizawa admitted that the team had begun the initial steps towards creating Wind Waker 2, but the demand for a more Ocarina-like game couldnt be ignored.
However, Wind Waker 2 would have taken place in a more land-based setting, Takizawa explained, rather than on the sea, so that we could have Link gallop across the land on a horse.
But Links proportions in Wind Waker werent very well suited for riding on horseback, he was too short, and an adult version of Toon Link did not seem appropriate either. So, while we were stuck on those problems, we became aware of the greater demand for a more realistic, taller Link.
High-budget live-action fantasy movies were also huge at the time, he said, so with all things considered, we decided to have at it. With that, the game shifted to what would become Twilight Princess.
IGN Article
So we can thank Lord of the Rings and the stupid fanboys crying about Celda for Wind Waker 2 being cancelled.
Hey Nintendo... maybe come back to this after Breath of the Wild?