Nintendo also changed when Iwata took over. They like the big mainstream hit. They like casual appeal. They have become a company that is very afraid to offend. Every game has to be suitable for everybody and have huge sales potential. Zelda was always a very progressive and ambitious series. As popular as it has been it is not really a game for everyone. It has too much depth and complexity to it. It's user-friendly but it is not for everyone.
Umm, you must not follow Nintendo all that closely, because that's just straight out wrong. It definitely
is true that Nintendo changed when Iwata took over... but what you're describing is precisely the
opposite of how it changed.
I can see how you
could get that impression if you focus solely on the 'Zelda' series, but even then you'd have to ignore Twilight Princess.
The truth is, trying to make every game suitable for everyone and being very afraid to offend is how Yamauchi ran things.
If what you were saying were accurate we'd never have gotten games like Advance Wars: Days of Ruin (a 1st-party developed game, with cursing and plenty of death), Metroid: Other M (it may have had overly-simplified controls, but the game's story was definitely NOT intended to appeal towards everyone-- and Yamauchi certainly wouldn't have let it through), Super Smash Bros. Brawl (never would have been as hardcore), and Twilight Princess (Yamauchi would have strongly discouraged a Zelda that could get a 'T'-rating... and do keep in mind that Wind Waker's development started when Yamauchi was still at the helm), as well as countless others.
Unlike Yamauchi, Iwata has encouraged games aimed at specific audiences. Let's face it, we never got games like Nintendogs and Brain Age under Yamauchi either and those never would have appealed to core gamers. Instead what we got were games with in-depth gameplay but light-hearted themes, meant to cater all, but often ended up only appealing to even smaller niche groups.
I will agree with you that recent Zelda games seem too afraid of being what Zelda was meant to be, but it's not for the reasons you seem to think. The way I see it, it's due to Aonuma's lack of understanding of the series. With each new game he makes, he makes mistakes, and then overcompensates in the next game in the areas he
thinks he failed in the previous one, meanwhile re-making the real mistakes he misidentified in the first place. I don't think it has much to do with interference from his higher-ups.