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Miyamoto made the original Legend of Zelda inspired by the movie Legend, with Tom Cruise.

If you watched the movie, the princess was the catalyst of the story. So, since TLOZ is a role playing videogame, it made more sense to title it after the princess, because the hero wasn't necessarily called anything. You were the one who determined his name, "link" was meant to be an avatar, with no real backstory or weight to the character.

He was you, therefore it couldn't be called Legend of Link. And it couldn't be called "Legend" like Miyamoto wanted because that already existed. So Legend of Zelda it was.