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Vectorferret said:

It may have seemed out of place at the time in Japan, but Legend, Willow and Labrynth were all around that time in the US which I would imagine helped push fantasy a lot.

They may have something of a cult following NOWADAYS  but at the time none of these films were huge boxoffice drawcards (in fact Legend and Labyrinth were out and out BOMBS, and WILLOW fared only slightly better in comparison!) so I doubt they'd be seen as a huge contributing factor towards making fantasy more mainstream or paving the way for Zelda's mainstream success...

Given the lack of success of these 3 films, it could be said that Miyamoto was right and fantasy was in fact VERY unpopular at that point in time.