This is pretty much what The Legend of Zelda: Ocarina of Time's Kakariko Village looked like in my head the first time I played
Unreal Engine 4 being freely available has done wonderful things for older video game scenery. We've seen gorgeous builds from World of Warcraft, Sonic the Hedgehog, Resident Evil and Super Mario Bros., not to mention a couple of Ocarina of Time's other iconic locales -- the Temple of Time and Zora Cave.
Eventually we'll have the entire game rendered in Unreal Engine 4. Then we'll hand it over to the amateur programmers. Nobody tell Nintendo.