I agree Pokemon is more popular and also makes more sense for increasing the kid/female appeal of Universal's offerings. It should be the anchor for the third gate (DreamWorks, Illumination, Laika, Fantastic Beasts, Jurassic World and the second-tier Nintendo franchises like Metroid/Star Fox/Animal Crossing would make for a good kid-friendly third gate)
But Hyrule really should get its own land, even if it takes over Toon Lagoon (Dudley is already suited to a mountainous E-ticket and people have always found the theming to be lackluster, Popeye/Olive/Wimpy's would make a great Wind Waker mini-land, the Toon Lagoon theater area could finally have some purpose).
IMO, Lost Continent is too small for a decent-sized land. It either needs to be overhauled, used for a Whoville mini-land (Grinch coaster/dark ride, Seussical-esque production ala Aladdin at DCA) or used for something like the Wonka concept (one that isn't epic/popular enough to warrant 8-12 acres)
While I wouldn't complain if Zelda does replace LC, I think Toon Lagoon or the third gate are better in terms of space.