I would enjoy a direct Twilight Princess sequel. Midna is my absolute favorite character from the Zelda series, and all throughout TP I was waiting for the moment she would betray--I had falsely assumed she was using me purely to further her own goals.
I've become disenchanted with RPGs. None seem to offer what I want, and I really do't believe my wants are a niche segment. There are generally two types of RPGs I see now, western and japanese.
Western RPGs bore the crap out of me. Games such as Fable, Oblivion, and The Witcher fit this category. their biggest flaw is that they are more RP than game, some mutilated version of D&D without the company of friends. They usually focus around a single character who is essentially a stand in for the player. Parties are far more interesting both in game play and in story, but western RPGs seem to have an obsession with throwing these glorious dynamics into the trash. They also tend to be heavily decision based, which also has problems for both the story and game play. Since the player is supposed to make storyline decisions for the character this often leaves little room to give the main character any personality of his own. It's also hard to design a decent story around key climaxes the character can choose to avoid. How can the writers develop a strong motif where the main character is haunted by murdering his own mother if the player is allowed to choose to save her? Silliness. In game play the player is given all these options to explore, but can only choose one of them. A game doesn't become more interesting by improving all the things a player can do, but by improving all the things a player is doing. If you give me 1000 skill path options I'm still just as bored being locked into only one of those paths for 50 hours of game play as I am if you had only given me one option to start with. Since there is usually only one main character all these options are wasted or set aside for a second play through. Additionally the game becomes very difficult to balance. Often out of the 3-10 skill path options one will be optimal. Sure you can build your character however you want, but there is only one right way to build him, and doing anything else means you are inferior. A travesty of game play.
The flaws of Japanese RPGs lay mostly in the fact that the designers are... Japanese. For some reason the Japanese seem to have a predilection for all that is annoying, bothersome, and frustrating. You know that ultimate weapon you want? Yeah you can only get it if you haven't opened these unremarkable chests throughout the whole game, and we won't tell you about this ahead of time. They give you many characters to choose from to form your party, but often force you to level them up individually. They also often poorly design characters in regards to balance, creating an optimal party configuration that trumps all others. Combat decisions are often overly simplistic--buff/debuff, heal when low on health, otherwise use your strongest attack.