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I agree with most of the points you guys make.

I'm thinking Skyrim is where it goes overboard just for the sake of 'being big', so maybe that game isn't the perfect example. There's a lot of pointless areas in that game. In that I agree that they should be wary of such things in a Zelda game and that they should keep everything a bit more subtle. However, I also agree that there should be more stuff to find and explore.
Until now I think Twilight Princess's Castle Town was the best town they created. There's a lot of people there but most are scenery meaning you have to do some searching around. It looks like it's a busy town and the true center of Hyrule. The only thing it lacked is that you couldn't get into most of the houses.