darkSpyro

This is mostly my speculation, but I think that the levels might be less of the mixed level designs from the last 3 games, and more like Spyro's Adventures, with levels mostly based on the 8 (Or 10) episodes. Here's why I think that...

First, the only level we know about not only focuses almost entirely around air, but also focuses around a previous Air Element Skylander, Lightning Rod. The level's plot also focuses around collecting a magic lightning bolt, which is fairly attached to the air element itself. Second, consider out known villains. Lord Stratosfear obviously matches with the Air element, and the other two, Count Moneybone and Shellshock, can also fit into an element niche. Moneybone will most likely be fought in an Undead area, while Sheelshock is a bit harder to pin down. He could easily fit into Earth, Tech, or even Water, but even then, he could easily be the boss of any of them.

I think the possible reason for this is to demonstrate how each vehicle type functions with the elements. For example, a Fire level where we take our boats under lava, an Undead flying section where you fly through giant skeletons, or even a Magic racing section with a topsy turvy race track that constantly changes.

How do you guys think that the levels will play out?

I see the plot as being the same as Mario Kart 8 since this is basically the same game

Ah yes, I remember Mario Kart 8's platforming sections very well. I also remember the giant sky eating head in Mario Kart 8 too.