Consider a couple of things before you dismiss the idea offhand.
1.)
One place to look is JRPGs. As far back as the late 80's, these games were melding very futuristic technology with magic in ways that some considered revolutionary. Phantasy Star is one example, but subsequently we've had the Tales games that have seamlessly combined technology and magic into a single force. Characters in, for example, Tales of Vesperia and Tales of Symphonia, might travel from a field swarming with magical monsters to a city with electric lighting. And the games don't miss a beat or ever feel out of place.
The very best example I can think of of a game that combines
extreme technology with
extreme fantasy is Phantasy Star II, one of the earliest games for the Sega Genesis. In its predecessor, as previously mentioned, the two existed; in this game, they were both liberally referenced rather than just being a part of the world. The story starts off with a technological disaster that turns regular creatures into mutants in a utopian, computer-regulated and dominated society; by the end of the game, you're rocketed into ancient temples and searching for lost treasure. Again, it doesn't skip a beat; every aspect of the game's world feels well fleshed-out.
The co-existence of these elements is one of the things that set Phantasy Star apart at the time.
Plenty of other game franchises have demonstrated how these two elements can coexist; there is no reason to believe it would not work if done properly in a Zelda title.
2.)
Classic film and literature also combines elements of fantasy and science fiction seamlessly. Dune, often thought of as a science fiction story, is filled with messianic prophecies, laserless weapons made of hard material, and magic. It's chock-full of mystery and adventure, but the science fiction elements allow it to break free from some of the limitations that a strict fantasy setting would have imposed on it. Technology is used to call up ancient, magnificent sandworms that can be ridden across the desert. Ornithopters make for exciting scenes where characters contend with the desert in their flying machines. The resilience of our characters is tested and tried and it remains the focus because neither the technology nor the magic ever goes too far, even when it is at the center of the story.
Hyperion, another science fiction story, boasts even more advanced technology, but that technology is used to explore a much more horrific and twisted world with its own set of rules and one of the most chilling villains in literary history. Just because technology is available does not mean characters can rely on it; one story in the book features a character who becomes hopelessly entangled with a vicious and mystical tribe.
Even Star Wars, though it may not be the best example, balances magic with fantasy. Dagobah is a classic fantasy setting, almost entirely free from technology save when it acts as a detriment. Cloud City is a soaring, art deco masterpiece that adds to the fantasy but would nonetheless be impossible without well-developed technology.
The point is, once again, we can see these elements work together.
3.)
The Zelda series itself has explored some pretty remarkable territory. Spirit Tracks, The Wind Waker, and even Majora's Mask all have a post-Renaissance style and flavor, but are uniquely fantastical and never lose the sense of adventure associated with the franchise. It is not hard to imagine guns existing in these worlds but, like the worlds of Phantasy Star and the Tales games, hand-to-hand combat still exists and steel is still the material of choice for weapons. Technology and magic synchronize beautifully here.
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If it can avoid the stupid, gritty cliches associated with futuristic games, I think a futuristic Zelda title would be fun to see. I used to be adamantly opposed to the idea; like many here, I thought the franchise was best set in a medieval-ish period, etc. But after seeing the aforementioned games and also seeing how other franchises melded technology with magic, my opinion completely changed. There is no one way to make this work; I don't claim to have the key to it all or anything of the sort. I do, however, think that Zelda fans have demonstrated time and again that they are closed-minded in their perceptions about the franchise, and Nintendo has demonstrated time and again that it can take the Zelda franchise, and its characters, to places we have never dreamed of and make it work.
The key is for the developers to work around the unique story, items, level design, exploration, etc. that they want for a specific game--neither inhibit it nor change things up just for the hell of it.
I also think fans forget that the universe of Hyrule is very malleable. There are at least two timelines (probably more), the possibility of alternate dimensions, etc., and there currently exist at least two distinct styles which dominate Zelda games. Any game can take place at any time along this always-changing timeline, and limitations imposed by one game need not affect another, as it can simply shift to a different time period or universe. If anything, the Zelda franchise is ideal for experimentation.
For the time being, I am much more interested in seeing an explicitly Asian/Oriental aesthetic in a Zelda game, especially after playing Okami. But an art deco future isn't bad, even if I don't like the ideas outlined in the first post.
