Have you seen modern video games? Take a look at The Last of Us Part II, Call of Duty: Modern Warfare 2, Red Dead Redemption 2, Hogwarts Legacy, Horizon Forbidden West, etc. The difference in fidelity, animations, audio, and just overall depth and immersion is astronomical.
Zelda would make for a great game on my phone though.
>Apparently the game is just 16GB and runs seamlessly on a decade old hardware with no loading screens between game areas.
>How does Nintendo pull it off?
Because it looks like two decade old game. No one is arguing that it can be fun, but it looks awful.