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I’m hearing a lot of talk about the next “side game,” and people assuming it’ll be smaller in scale, but I’m not so sure this is the case. I think handheld gaming is on its way out the door. It’s been nine years since Nintendo released a mainline handheld device with the 3DS. Even though there have been various updates released since then, they are all simply adjustments to the system. With the release of the Switch blurring the lines between handheld and platform gaming, I think Nintendo is ushering handhelds out. If Nomura reached out to Nintendo right now about making a new game, I think they would push for a Switch game, and at that point I don’t see why he wouldn’t just make it a cross-platform game.
Can't speak for everyone else but when I think about a KH game that is smaller game in scale in this day and age, I'm thinking about something along the lines of Uncharted: Lost Legacy or the 2016 Ratchet & Clank rather than anything on a handheld device.