The point of that first part was more to provide an explanation as to why The Legend of Zelda is the primary subject of these types of discussions to those who seem to not understand that. I didn't intend to present that 'Link as an avatar' interpretation as the only valid interpretation. Apologies if it came off as such. Main point of the rest of the post was not that they need to handle it a specific way, but more that Nintendo's / Aonuma's comments on this have not been satisfactory in the slightest, and that they can and should do better, and that it is absolutely not hard at all for them to do better. Some of your / Morrigan 's proposals I mentioned too, and they could even improve a bunch without even having a female player character if they just had Zelda do something different than just waiting for Link to save the day for once.
If I gave the impression that I took issue with anything in your post I apologize, because I don't. I simply mentioned it because I agree with you. Nintendo has given piss poor excuses for their decisions and I just find the self insert character to be junk to begin with when it doesn't actually reflect on the game itself. When Nintendo finally dropped that crap and started to own Link as an actual character, that made me happy. Now do better in general.