Sounds to me like they just want to make the new 'definitive' Zelda. I don't interpret that as meaning the most realistic graphics. OoT was the definitive game of its time, not because it had the most realistic graphics. Rather it brought us arguably the best, most charming 3D world at the time. If I was aiming to make the next definitive edition, I'd try to make the world feel the most 'alive'. This doesn't require realism, a strong theme in Zelda is the sense of magic and I would start there. I felt like TP lacked in charm, it just felt a little too generic.
Of course right now I'm just talking about the world, while I still think the design of the game has to be freshened.