I think that he only remains in person in Hyrule because he is bound to it. Plus, he probrably had the ToW shard because it was entrusted to him. He also gives many clues that he was King during OoT. The ToW was given to him maybe because of the fact that Zelda, Tetra's ancestor, fled to the mountaintops as Daphnes states, "Those were your ancestors," when he talks to Link and Tetra. Because Hyrlue had been frozen and sealed in time for many long years, there are so many possibilities.