That would work...
And wow. What do they want there? The morphos, I mean...
In regards to the creepy Morphos bit? Well the landscape I mapped out is essentially an expanded Hyrule Kingdom with locations like Faron Woods, transitioning to Eldin Coast, and on the other side is Lanayru Peninsula (keep in mind this is only one kingdom of many). And there in the Lanayru Peninsula, given how its brushed up against the Lost Woods, development of civilization withered and after the events of the new baddie's evil unleashed, it's been infested with Morphos (this being your first time dealing with them). So the entire Peninsula, until you get to the southern tip where a small village managed to thrive off of the nearby port, is covered in this fog that the Morphos emit when in large numbers to "blind" their prey.
They're all under the command of the Morpho King (who turns out to be a serious side quest where you get to be a Monster Slayer of sorts- Van Helsing anyone?) and he's manipulated by the new baddie (Gaburen, if you're interested in the name) to prevent the Hero of Time from getting too close. This is because the Morpho King, like any faithful monarch, wants to provide his people safety. And in a world where they aren't wildly accepted that means everything (except for of course, the Land of Fiend...but even then they disguise themselves. Odd tidbit, Bulblin, Bokoblins, and Moblins are even disgusted by the Morpho presence, which is why the Twili stick to their realm).
It's great fun once you tough out the Lanayru Peninsula and the Land of Fiends as once Link and Zelda get the Lens of Truth and Lens of Purity, they're able to better distinguish between Morpho and non-Morpho. A few good side quests, and it once again recreates (improves, even) the "dungeon dynamic." Before you'd be looking for keys and passageways, etc. But condensing the necessity increases the character value, which means Morphos never get old. They are always going to be somewhere in the game, where you're going to have to implement strategy not just to navigate levels, but figure out how the pieces of the puzzle (characters) unlock the mysteries of each level. Sure, there may be keys, but the characters are also the keys!