I, personally, don't agree that top-down 2D is inherently worse than 3D. It really depends on the need of the game. Now, admittedly, I haven't played A Link Between Worlds (I don't have a 3DS), but consider this: Don't Starve has movement and camera mechanics almost identical to A Link to the Past: it's top-down, with full 360 degrees of movement. While I, myself, couldn't really get into it, its popularity and the fact that my girlfriend plays it constantly tells me that it's possible to have just as much immersion with top-down 2D graphics as with first-person 3D graphics.
Of course, I could just be a fanboy for the 16-bit era of games... except for the fact that (flame-shield up) I kinda have trouble getting into A Link to the Past, as well. Honestly, I enjoy the first Zelda more than ALttP, since it's pretty much a Zelda sandbox. (Yahtzee once joked that Zelda is just one game that Nintendo has been constantly remaking since 1986, and honestly, I WISH that were the case; the Elder Scrolls games are far more faithful to the NES Zelda than the subsequent Zelda games, especially Arena which pretty much has the exact same goal.)
Top-down 2D allows for a wider view of your surroundings, unlike first-person 3D which limits you to seeing what's directly ahead. Both are good depending on the needs of the game.
Progress is all well and good, but if it ain't broke, don't fix it. (The lives system IS broke, Nintendo; unless you actually are making an arcade-style competitive game, FIX IT!)
Now, all of that said... the item renting system just sounds horrible. I think I see where Nintendo is going with this, as item buying is what you do in RPGs, but I'd rather you just start out with all the items you'll ever get and just craft the dungeons with puzzles requiring good combinations of item-usage.