Not only the grass sword slashing but also link crawling around it.

Even on the brink of a new gen, and can hardly think of any new game that gives this detail to vegetation. Metal Gear Solid 3 comes to mind.

Edit: html editing to paste code for video, fails... anways, skip to 0:50 http://www.youtube.com/embed/Z2g-Pe1dyA0

Probably because in Zelda its an important part of the gameplay and on other games they are just aestethic.

But after I cut the grass, I can't even watch it grow back in real time? What kind of last-gen tomfoolery is that?

Yep, the only other game ive seen that has comparable grass physics is Crysis 3, and that kind of detail is a given for Crytec

Im now boycotting the game because they didnt include this super important feature

maybe cos the WW grass is cartoon style.
each leaf is bigger and there are few leaves.

but is impressive for a GC.

Seriously, how can Nintendo lay claim to being at the pinnacle of vegetation interaction if they can't even keep up with industry visionary Peter Molyneux?

you can chop down trees in crysis. There's games where the stuff move. But the vegetation is essentially boxes you break, which a lot of games have.

This reminds me, Metroid Prime on the GCN still has a lot of graphical features that even 8th gen games seem to be missing, stuff like blood/condensation/rain on the visor, heat haze coming from the gun after heavy firing, the reflection of Samus's face on the inside of the visor when there's a flash of light,etc.

yup
nintendo knows how to do damn fine vegetation