Live action, feature length film would be a terrible way to develop the franchise, I thonk. TLoZ is the sort of world that has to be animated to work right, because of the way magic works.
The zelda world is a world of fireballs, conjured lightning, and faries. These things can look good in animation, but they neeeeeeeever look good in live action fare. Magic in live action films needs to be more understated. Nothing flashy. But that kind of magic wouldn't feel properly zeldaish.