The art-style makes sense when you stop to think about its simplified nature over ALBW's style. The original Link's Awakening (and by extension, the Oracle titles) were attempting to emulate LttP's art style, to the point that early builds of the game were more akin to a remake of LttP (at least in the world map) than being its own thing.
Of course, the Game Boy can only do so much with its limited palette and size of the screen, so the LttP style had to be simplified to fit on the Game Boy. It's this sacrifice to the art style that I believe is what Nintendo are going for with this remake: to purposefully invoke that style over re-hauling the artwork to fit 2D Console Zelda titles.
