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Naughty Dog, Team ICO, Rare and Capcom could most likely make really nice Zelda games as well. Better? Well, that's a difficult question. But for example Zelda Minish Cap (by Capcom) is one of my favourite Zelda games, so I do hold it higher than many Zelda's by Nintendo themselves. So of course it is possible.

As long as I would not get any spin-offs like "Zelda: Nuts & Bolts" or have to wait a decade for "Zelda: The Last Guardian" I think it would be fine.

But would a Zelda game suffer if it went mutliplatform? Probably.