I always thought the time split made sense for some of the reasons laid out in the timeline. In OoT, you have to go back to the past at least once. That, to me, was the the actual time travel: when Link sends his consciousness back to the child timeline to get the Song of Storms (and the other things). I took the sleeping literally in that his body is just asleep in the Temple of Time, where Gannon can take the Triforce from his body. When Link goes BACK. . .TO THE FUTURE! in order to defeat Gannon, he's now in a different future. The old future was abandoned, and the hero fell.
I really liked the video. It definitely put out some info I hadn't fully considered before, and I think you do an excellent job explaining things.