I am a bit saddened that so few of you have read The Wheel of Time, which is one of the major inspirations here. The vast scale of ages involved in that type of time loop is incredibly vast. Time enough for Skyloft to rise and fall many times over, before the same moment in time happens again. On top of that, the loop is not a closed loop, but more of a coil, where each pass is different enough for truly important decisions to be made. The Triforce would be more akin to the hub, upon which the multiverse rotates, and creation is more like recreation, on the grander scale.
While I doubt the franchise will actually go in this direction, the idea is interesting. One eventuality that would need to happen, is the master Sword would need to be lost/broken/used-up, requiering a new one to be forged. Being so long ago, and the legends lost, it would seem like the first/only time. Add in to this the idea that the Magic Sword is an attempt at recreating the Master Sword, we could very well say that there is a point in the loop where there actually are more than one copy around. Possibly multiple points in time.
The creation of the world could follow similar logic. for the world to be created, it would first need to be destroyed. Some important part, such as members of each race, that survived to the end, would be saved from the destruction, and the goddesses would have created/recreated a safe place for them.
Oh, and Zelda would definitely be Rand.