I think it's faster to do 7 before 2+8 so you don't need to do Up+A before warping to 1. I don't think it should be to much trouble to have enough rupees for the bait and arrows by the end of level 1. Between level 3, level 4, the rupee room in level 4, and the overworld enemies, that should be at least 40 rupees (which is how much you need in addition to the gambling game rupees). I'm not sure, but I think that after warping to near level 5 it's slightly faster to go to 8 then 2 rather than 2 then 8. Based on all this, we have it narrowed down to 2 overworld routes that you need to time, and after comparing the difference between these routes to the amount of time that the white sword saves in level 6, we'll know which is the best route. Here are the 2 routes that should be timed (and don't forget the whistle trick):
First Route:
First sword
Up+A
L3, raft
Up+A
Gambling game 4x
Blue candle
L4, ladder
Up+A
L1, bow
White sword
L5, whistle
Whistle to 1
Blow whistle while facing right
Bait
Arrows
Power Bracelet
L6
Whistle to 3
Blow whistle while facing left
L7
Up+A
Right 2 and warp to near 5
L8
L2
Whistle to 1
L9, silver arrows
Second Route:
First sword
Up+A
L3, raft
Up+A
Gambling game 4x
Blue candle
L4, ladder
Up+A
L1, bow
Bait
Arrows
Power Bracelet
L6
Up+A
Right 2 and warp to near 5
White Sword
L5
Whistle to 3 (if this would require 2 whistle blows, just change screens after the first one instead of getting caught by the whirlwind)
Blow whistle while facing left
L7
Up+A
Right 2 and warp to near 5
L8
L2
Whistle to 1
L9, silver arrows
Edit: Sleepz, I noticed you said that a few levels will be slower than my video because you have a worse sword, but don't forget that I take a big detour in level 8 to get the magic key, so your total dungeon time will probably beat mine.
Edit 2: I have another 2 questions. Are you going to go out of the way to get any of the keys, or will all the keys be on your path? Also, are you going to do the key glitch in level 1?
Edit 3: I just timed the key glitch, and it wastes about 6.35 seconds, which is about how much time killing a room full of darknuts with the white sword wastes. I'm pretty sure that it's better not to do the key glitch.
Edit 4: When planning the keys, I noticed these routes have a problem because 7 needs to be after 2, so the 2 possible routes are 341568279 and 341658279.
Edit 5: My estimate is that the white sword saves 10 seconds in level 6.
Edit 6: I have another question. In the 341658279 route, how many times do you have to blow the whistle to get to 3?