Hey, long time no speak.
Anyway, the only things you have missed is some ideas me and B-E-T-A have been thinking of, which consists of what we should do with Termina, as well as working around Zelda Canon to make this plot work.
You can basically see all of these ideas in the conversation window between me and B-E-T-A.
Oh, and I had some new ideas just last night. What if instead of just the poor and the criminals living in that sealed off area, what if Gorons, Zoras, etc. were being held in there just because of who they are? This ties in with a character that ties in with my fan-fic that is largely based off of our idea. He is an insane religious leader that believes in false and misconstrued aspects of his religion (which is basically the same as the Hylian religion). He uses Din's Fire, Nayru's Love, and Farore's Wind (in a much cooler way) from
OoT as forms of combat. Oni uses his body after leaving Link. That's about as vague as I can describe him.