The graphics look goofy yeah but I don't know how Nintendo would have handled this. They're kind of stuck trying to update something people regard as the greatest single game ever made. If they go too far in making it modern, they upset the purists. If they make it too close to the original, then it looks uncanny and raises questions like why make a remake at all.
Personally I don't like having realistic textures mixed together with cartoony anatomy. Characters in ocarina of time looked cartoony and jaggy because of the N64 limitations and that was part of the charm. This just looks like uncanny unsettling AI upscaling. I'm in favor of remakes but they gotta do their own thing too. This reminds me of the Mgs3 remake, how none of the story or dialogue was touched.
Maybe I'm also getting kind of old because I think the N64 Zeldas are perfectly playable games as they are. They're old and clunky sometimes, but they're playable games. They don't rely upon cryptic guessing like even older NES Zeldas, they don't rely upon understanding gaming conventions of the time. You can just play them and they're fine games. Just load up an emulator with some resolution upscaling and there you go.