I just can't imagine it working for the Zelda series.
100% agree with what you just said and your signature. I think they would just be customizable Hylians, Gorons, Zoras, or any other races in Hyrule.
ok from the standpoint of an indie developer I can picture a zelda mmorpg, but as it's pretty obvious a lot would change about the play style expected from a zelda title. Pokemon would be interesting and the mechanics would work pretty well, but personally I'd find it boring. Another game that would work, that I wouldn't necessarily play is animal crossing. Nintendo has tons of IP's that are plenty capable of being shifted to mmo's, but it would take patience and understanding from the fan base.
I still dream of the zelda lore and characters being involved in an mmo. To me the perfect era for this would be the time before wind waker where they are waiting on a hero to come save everyone, but link doesn't show up. That means many individuals would have to team up to try and stop the onslaught of peril that faced them. This leaves so much room for mmorpg elements, especially guilds. And because the world wouldn't be completely flooded yet that leaves room for a great open world with an amazing variety of terrain. of course not everything needs to be toonish, but the option is there.
Precisely and it's ripe with story and creation opportunities. Like what would the goddesses do when their hero isn't around to intervene? Do they bless certain heroes with needed power? Is the combined might of heroes enough to at least keep evil at bay for the time needed? We see the glimpses of what the past might have been like in WW or even in another timeline like twilight princess where link hasn't grown up or been born for a while. What happens when he isn't around?