Def new. It sounds more and more in what little info we have. This Nintendo going the FF7 Remake route (minus being episodic) where it's an entirely new take on the game. 

I'd love for the to play with lighting in puzzles like you mentioned. But tbh, I don't really think a game of this (presumably) high fidelity will be able to support ray tracing at a stable framerate. 

Maybe I'm wrong, after all this is Nintendo's favorite child and they could expend a ton on development (and time) since profit is assured.

It will - SW2 already has games that weren't made from ground up that use RT, so I have no doubt that Nintendo devs will do marvels with clever combination of traditional techniques and RT.

Personally, I really hope this is more like a re-imagining akin to the modern Resident Evil remakes. I adore the original Ocarina of Time and it will forever be one of my most favorite games of all time. But we had the re-release on Gamecube with Master Quest. We had the remake on 3DS. And thanks to decompilation and recompilation there's multiple easy ways to enjoy the original game either in 4k @120fps with better textures, play its countless mods (some of which are almost full-blown sequels), or even play the game as a randomizer with a myriad of settings to customize your experience.

What I'm really hoping for is for some of the cut content of the original to be brought back. Additional dungeons, regions that were planned but then cut, combat on horseback, medallions functioning like items, etc. Maybe have a "second quest" that uses some of the more complex and large beta dungeon designs. Let us collect the Triforce, as in those early trailers. Ocarina of Time was so full of mystery when it released. Bring some of that back after almost 30 years! 

Holodust beat me to it, but we've seen games like Star Wars Outlaws, Indiana Jones, and Layer of Fear utilize ray tracing on Switch 2, so the hardware is capable of doing so in a high fidelity game, with decent performance.

It's just up to the devs whether they want to go down that route, or stick with rasterized lighting instead.

It still had people providing grunts, gasps, screams, etc.

If Link's "hya" and such is what you mean, unlikely any of the source material will be reused due to how low quality it is by today's standards.

Given the way Nintendo teased it (+ the whole new cinematic of the tapestry), I'm sure we're getting a complete retelling

And I wouldn't want them to reuse any of the old samples either, unless they upscale and tune the crap out of every one and the sound director ensures that they are of the highest quality with no artifacts. Even uncompressed audio from 30 years ago will be poor quality by modern standards.

I've been playing Pokemon Violet over the past month and a half, and while I can spend an hour complaining about the technical (de)merits of that game, one thing GameFreak got right was finally giving many of the older Pokemon quality audio samples in their cries. It was so jarring hearing Gen 1 and 2 Pokemon with crunchy Game Boy-quality cries next to modern ones that sounded like they belonged on that hardware.

Some of us have greater standards we'd like to live up to.