Eiji Aonuma, a member of the Zelda team, addressed these questions in a recent issue of Nintendo Power:
I remember the Ocarina of Time glory days of feeding Epona carrots to make her run faster, but lately our favorite video game horse has had a rough transition. Wind Waker was set on the ocean and Epona’s job was taken over by a boat with a talking figurehead. Epona made a considerable return in Twilight Princess, but it was not the same. In a terrible turn of events, they replaced Epona’s carrots with spurs, mean, ugly spurs.
Has Epona even been confirmed in Skyward Sword? The Zelda team has been obsessed with other modes of transportation lately. After The Legend of Zelda: Spirit Tracks, I wouldn’t be surprised to see a steam-punk talking airplane in Skyward Sword. However, if I had to take a stab at it (pun intended), I’d guess the Sword itself will take care of the transportation between the two worlds. Perhaps it doubles as a hover-board?
The Legend of Zelda: Skyward Sword is scheduled for release in 2011 on the Nintendo Wii.
Source: Nintendo Everything