Im pretty sure it was confirmed itd be an overworld smaller than TP, but more dense, and no 'blank spaces' with nothing to do.
Yeah, but the thing is that Twilight Princess was MASSIVE. Being smaller than it doesn't exactly paint a specific picture. But yeah, they've stated that they want to make it more realistic in comparison to Link's size. Though I would argue that Twilight Princess had the most realistic overworld in any of the games simple because an adventurer (Link) I would assume would feel confined in a world as small as OoT, which, as I've said, could literally be circumnavigated in about a day (Hyrule Time).
I really feel they are going for a much more condensed game, getting rid of a lot of "fat". E.g. Bombs and bombchus have been consolidated into just one bomb with the ability to be rolled. Also much more environmental interaction, having the ability to pin hearts to a fence with arrows, grabbing oversized fruit with the whip, etc.
Condensed, but not small. The Wii disc has enough space to make it happen, so they should, AND IT WILL BE MAGICAL!