I never said Legend of Zelda was obscure. But it does not factor in the current discussion. The OP asked how come so many games (although I do not think there are that many) are cartoony. Obviously, complaining about the "cutesy" style of Sims or Mario, or any kind of "non-serious" game is kind of ridiculous, since that style fits the theme. Therefore I assume the OP is complaining about inappropriate use of such art styles, i.e. in games where the genre or content implies seriousness and yet is graphically represented in a way which contradicts that.
So if we ask ourselves why would someone make such a game, I claim that its because that someone is a clueless manager who has no idea what makes a good game and thinks that if the game looks like some other mega successful game, it too will be prosperous. Now, you may claim that Zelda was a successful example of a cartoony game, but I counter that Zelda is much like Mario - that is its not really meant to be that serious.
WoW, on the other hand, has a very epic, very serious premise, despite the gnomes. And here we have an example of a serious story mated with cartoony art style, resulting in a very successful game. So when I think which game is more likely to have influenced any later game which tries to join a serious premise with a cartoon look, I think of WoW, because that's what it did. Zelda didn't.
In fact, and I may be wrong here, but I can't think of any other game which reaped such success and has had as much influence as WoW when it comes to mixing of seemingly contradictory art styles and genre. Mostly because usually, it doesn't work. In fact, even WoW, at least initially, didn't go overboard with the style and silliness, limiting it mostly to exaggerated equipment, few side quests and zigzag style of architecture, because trying to do such lowpoly models in a realistic fashion would just make them look like crap (let's not forget the lowres textures and the general lack of 3D essentials such as bump-mapping).
So this discussion is not about which cartoony game was the first, or most popular, its about how come there are absolute horse manure games in existence which try to do a Sesame Street styled hack'n'slash dungeon crawler. I say its because of WoW. You may have a different theory.