For its time Ocarina of Time was an absolute game of wonder (back then there werent any games that gave you the freedom to explore a large (for the time) landscape).
Till this day it still holds as an enjoyable experience. That is the mark of truly good games. Not the things that get hyped to hell nowadays because of graphics and get boring after an hour.
I dunno wich version you are playing but the 3DS version is the best one. It has some areas that were a bit off redesigned (like the 2D town).
Are you sure you played Xenobalde? Because the faces on that game are atrocious. You still seemed to enjoy it alot from what you said though. :)
I really dont see what the problem is with the faces though. They look fine to me. About as good as a Tales game if not better.
As for the color. Wasnt the first area in Xenoblade also the same exact pallete? Seeing what they did with the first game, i am sure the whole game wont look like that on every area. There will be variety in the envyronments.
Have more faith man. This is the team that made Xenoblade and you are already prepared to run them down just cause they are making another one.