Good argument, but the fact that the Fortune Teller has the monsters hide behind a curtain and come out the moment the starring character is unable to see them, clearly indicates a measure of malice... and it's not like the monsters are making him do things against his will since he breaks into laughter.
And strangely, the dungeons are referred to as the "Demon King's"... so none of this really makes much sense >_<
Unless he's conquered them all but for the room behind the bosses, who could be neutral guardians as you suggest. That is what I like to believe at least.
Fair enough. I suppose it could be the normal case of things: The fortune teller is evil and was trying to destroy the Hero of Light, maybe by breaking her spirit, but destiny flipped it on it's ass and made it a growing experience for her.
That is if we assume it is illusionary, which I don't.
I suspect Ganon wanted for the hero to collect the Triforce for him, confident that he would then be able to defeat the kid and take it. Wouldn't be the first time Ganon allows the hero to do stuff because he's overconfident.
"This world will disappear", and with the presence of the word "genkaku", the dialogue is kind've on my side with this one.
Why not seal Ganon in the Dark World in FSA, then?
Well, for one, it's implied that Ganon created the Dark World with the Mirror, and so it probably ceased existing at the end of the game. Plus the Four Sword is a reliable enough seal.