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and the Oracle games were designed to feature a completely new Link and Zelda (you see them meet for the first time within the games). Regardless of whose decision it was, Nintendo stood by the decision enough to allow not only Capcom to portray this as a new Link, but for Akira Himekawa to do the same in the official Oracle of Ages/Seasons manga.
You keep harping on this point, but I don't think either Frog or I ever said that Oracle Link was LttP Link. The fact that it takes place next in the timeline doesn't imply that at all, so whether Link meets Zelda for the first time is irrelevant. My point was that the ending of the Oracles game + the old timeline placement strongly implied that Link's Awakening was a direct sequel to the Oracles. As for the Nightmare taking on the form of Aganihm, yes, that would seem to imply LA was intended as a direct sequel to LttP. But that doesn't mean Nintendo can't retcon that as they did elements of chronology when they first published the timeline.