See, here is the problem. A Link to the Past was meant to be a "vague history" for the Legend of Zelda. But then, Ocarina of Time was meant to be a "Vague history" for A Link to the Past, and then "The Legend of Zelda" got "forgotten" (and let's face it, a lot of us barely even remembered it by the time OoT came out). But then, something else weird happened. Wind Waker came along and used OoT as a "vague history," and then "a Link to the Past" got "forgotten," with Wind Waker effectively taking it's place on the hypothetical "vague timeline." And then, along comes Twilight Princess, which also uses OoT as a "vague history," but pays no attention at all to Wind Waker, so it's clearly on an alternate time line. The point is, you can't try and weave a coherent timeline throughout the entire series when Nintendo cared about chronology so little that they didn't even try to keep one throughout the whole series.
There is evidence to suggest that everything in the placing of these games works. And it's not just things like what happens in the game, but also geography, art, and the legends characters talk about in the game.
What reasons do you see that it doesn't work?
Because the geography and legends are NOT consistant throughout the series. Hyrule's geography gets jumbled around every generation of consoles, and it's because NINTENDO DOES NOT CARE ABOUT CONTINUITY. Why is it that in Ocarina of Time, Kakariko Villaige was the home of the Shiekkah, but in Twilight Princess, it wasn't, and in fact it was in a completely different part of the country? And why does the desert keep moving? And why does Hyrule Castle keep moving? Why do Zora Lake and Death Mountain move? Why was the Temple of Time originally next to the Castle, but in TP it's in the Lost Woods? The "timeline" theory also falls apart when you start comparing mythology between games as well, but I'm not nerdy enough to get into all of that.
People have a desire to put an order to things. Doing so with the Zelda games is something interesting to discuss.
Multiple versions of the Zelda universe does hurt it. It compromises the mythology of which the game is based on. The fact that everything relates to everything gives the feeling of a grand epic. Saying that it's strictly limited to 2 or 3 games makes it seem smaller.
I agree that
some people find weaving a narrative between all Zelda games interesting, but personally, I think that it's a waste of time, and I think that it's actually counter productive to the integrity of the series, because it turns the story into a huge convoluted mess. There are some guys at school who I hear talking about it from time to time, and I have to struggle not to laugh just because the things they say sound so ridiculous.
The Zelda games spanning multiple continuities does not make them any less epic, just like Batman spanning multiple continuities doesn't make his story less compelling. I just think it's ridiculous that people think that Zelda is better if it's a convoluted mess that you need multiple charts, graphs, and fan-fictions to tie together, when that's not even how Nintendo themselves designed the series. That's like taking a series of buildings that an architect made, dismantling them, and trying to put them together as one big building, even though the architect specifically wanted all of his buildings to be unique from one another. You end up with a big mess that does not represent the what the originals stood for, just because you want to be able to view it all as one unified piece.