Shefali - You're right, that is not how they are use in Lttp. However if you look at the sprite itself it is more like stepped on grass, than grass itself. The areas where people are most likely to walk are the most likely areas to be stepped on, therefore this use is logical. It is also used to create character and feeling, to prevent the scene from appearing bare. Although I do appreiciate some people do not feel comfortable with it, saying which the grass is the most simplistic part of the map to remove if you see fit.
Jeod - Well it would seem you are also right, if I remember correctly when I originally posted this I left that as a hole so that people could sprite their own if need be (because I was not a experienced enough spriter to make it look correct). Although now I suppose I am capable of making such a sprite, when I have time I shall add it.