The magic metre is just a limiter in my opinion, which makes them very similar to the use of common items (arrows, bombs, lantern etc.). It's full potential was realised in Zelda II, and to a lesser extent, A Link to the Past. If Nintendo are just going to throw it in to have it as a limiter to elemental arrows then leave it; it might as well be ammo.
What we need it what this thread is alluding to: magical spells. Ocarina of Time touched on this somewhat, but it's never really been picked up. Leave the upgrades - they can be equipment based (Blue and Red Mail, Master Sword etc.). Let's have some sort of expansion on Din's Fire - an actual magic ability without the usage of a magical item. We could have a multitude of these, which would give a dynamic edge to combat.
I hate to reference Skyrim because it seems to rattle a few fan's feathers, but the combat in that game--even though quite stiff--was varied, which gave it a big sense of strategy. It wasn't just mash the weapon; you could manipulate magic and even duel wield - kids of gave me a throwback to Bioshock. Let's have Link utilise full magical spells, but don't make it compulsory - it just has to be an option in combat. Well actually it could be used in puzzles. Hmm yeah, this would also work within puzzles giving it some thought now. Get rid of the elemental items and such and make use of Link's pure magic ability. You could even expand on this and have an upgrading system: Level 1 > Level 2 > Level 3 etc. And if you really wanted, you could bring in some RPG aspects, but that is pushing it slightly.
Yes I'm all for this idea; there needs to be a greater emphasis on magic if it returns.