Similarly, the Priest is distressed that Seres, his daughter, was kidnapped, and the Witch is worried when her granddaughter Irene goes missing as well. She explicitly says that she tried to stop Yuga from transforming her granddaughter into a painting, but failed, and that the only reason she keeps making potions while she's so worried is because she's so worried: if she stopped making potions to somewhat keep her mind off of it, she'd get sick with worry. Needless to say, they're also relieved when you rescue them as well.
Speaking of Irene, after clearing all three Hyrule dungeons and calling her over with your bell, instead of showing up on her broom and delivering one of her snarky comments, only her broom shows up with no Irene in sight. For any gamer who became a bit attached to her by using the warp system a lot early on, it's sure to be a bit depressing.
The reason Lorule is in such horrible condition. As you may have guessed from all the inverted Triforce symbols around the place, they used to have their own Triforce. But when people started fighting over it, instead of being sealed away so no one would be able to abuse its power, the royal family decided to destroy it. Without it, Lorule descended into what is seen in the game, causing Hilda to become desperate enough to try and steal the Hyrulean Triforce.
In the Vacant House while playing in the unlockable Hero Mode, there's a journal that belongs to Ravio, which leads up to him going into Hyrule to find someone to stop Princess Hilda and Yuga. The final entry is truly sad, with Ravio not knowing if he'd ever see Hilda again, but he knows it's the right thing to do.