The problem facing Nintendo is that in terms of the main 3d Zelda games, there's no realm where it's financially sensible to develop anything other than the massive open world games; even if they had a second team, they'd only be to have two open world Zelda's in development, and given the absurd scale of teams already on 3D Zelda, that's probably not feasible for Nintendo. The elephant in the "why not make older style side games" room (apologies if this wasn't what you meant by smaller games in your post), is those also took almost as long to make. Twilight princess was almost 4 years after wind waker, and skyward sword 5 years after that, and these weren't even HD console games yet. But as demonstrated by skyward sword hd, a large chunk of the audience from BOTW/TOTK weren't that interested in the previous game from the A team, in the old style, so it's fair to presume a new B team without the people who've been spearheading the franchise would have an even more muted reception. This makes it difficult to justify the large budget a new ocarina of time/twilight princess game would need.
They've come up with a solution, and that's currently in the form of external spin offs, primarily Hyrule warriors, and remasters, and that's pretty likely to continue. At this point, they've likely sat on WWHD and TPHD solely so they can use them at a opportune moment between development of the open world games.
(Side note: skyward sword hd at 4.15m in Dec 2022 was barely ahead of age of calamity, at >4m in Dec 22, last numbers we got, which is , oof.)