I know this might sound silly, but I think if the Fraggle movie is put in the right hands, it could have the potential to be in the department of critically-acclaimed all-ages appealing children's movies, like Tintin or something like that. If the script isn't "OMG teh fragglez are in teh real world" and just stuffed with cheap gags, but instead something reflecting the core of the show, it could really go well.
Corey was so passionate about all the meddling the script was getting. It very well could have been like that, and I'm sure Regency would skew the film that way. Part of me feels that the Smurfs movie came out of someone sitting at one of the story meetings and writing down every idea Corey complained about.
There is no way a Fraggle Movie WOULDN'T take the Fraggles out in the real world. And if it's truly the real world and not a cramped up studio set, it would at least be appealing on a visual level. Nothing, and I mean nothing gives the illusion that the Muppets are real quite like taking them outside and having them mingle with real people, getting filmed in natural light. That's why I love Murray on Sesame Street.
But it has to be done RIGHT with a heartfelt, intelligent script. If it degenerates into a "What's this? What's that?" type of movie, it would just be the same old crap over and over. Though I would hope a LARGE portion of the movie takes place in Fraggle Rock and the Gorg's garden... all rebuilt with a larger budget that gives it a nice depth of course. I LOOOOOVE how Sesame Street looks like a bustling, busy part of New York in Follow that Bird (and to a lesser extent, Elmo in Grouchland)... much more realistic than the stuffy studio sets. Very quiet there all the time.
Even without a movie, Henson basically has that, Dark Crystal and Labyrinth (not to mention older works) from the Jim era. They would want to pump that up as part of his legacy no matter what. I hate the catch 22 of them not getting great merchandise until they have a project coming, but they can't have enough hype for a movie until they have great merchandise.
Me? I'd be happy to just see a volume 3 of Fraggle Comics. Those things were brilliant!