I'm sure there are capable hands out there that could do the franchise proud. Problem is, if the unmade movie was anything to go by, studios are very much incapable hands that can smack a project out of the capable ones and force them to pick them up while pointing and laughing at them. I remember when Corey Edwards posted on his blog that the first live action Smurfs movie basically had scenes exactly like what Weinstine pressured him into including. Yep, especially the completely pointless Guitar Hero sequence. That's what happens when you put faith into a so called indie studio that treats animated/kid's movies worse than even the lowest common denominator studio ever could.
I honestly think we need new Fraggle Rock something, but I couldn't tell you what. I don't think a new series would work, I don't think a movie would work at this point. I'd love to see more viral videos, but that's never going to happen. And I mean, the Doozer cartoon is cute, but frankly it's not going to be nearly as popular as Sid and Dinotrain were due to the fact PBS refused to air the thing.