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Wasn't Retro set up to make games to appeal to 'Western gamers' or was that NST, or was it to justify Nintendo's partial purchase of Silicon Knights?  I can't remember

If so, I think they should tackle a different franchise as Zelda already is much more popular in the West than Japan.  I'm not your typical 'Western gamers', even though I live in the U.K about 95% of the games I own are developed in Japan.  But I think it would be quite nice to see Retro made a game in a genre which has been neglected by Nintendo as is popular in the West, maybe a non-organised crime twist on the sandbox genre or a W-RPG or even a TPS.

I would love to see Retro working on Zelda, but I think that there are other projects that not only would benefit Nintendo's variety of games, but also their general line up.