I want to see Nintendo take Pokemon in an even more Animal crossing direction.
I'd argue Nintendo already took Animal Crossing in a Pokemon direction. Pokemon Crystal, Animal Crossing: City Fold - they share a certain common design philosophy.

But seriously I think having more personal expression in Pokemon would be great. Online Pokemon shouldn't be just battles and trades. Having your own little "home base" would add tons.
I don't see the motivation Nintendo would have to re-boot the series. Diamond and Pearl combined have sold about 17 million copies, and HeartGold/SoulSilver have been huge sellers so far. Generally a studio only doesn't re-boot a series that gets good reviews and continues to produce games that top the sales charts every time they release a mainline game.
Capcom probably didn't have to reboot Resident Evil but it paid off for them in spades. That series was still selling and was still critically acclaimed but there was a whisper of criticism regarding the formula wearing thin. They could have waited until that became a problem and re-booting was an absolute requirement to salvage the franchise but instead they cut things off at the pass. They didn't let Resident Evil become stale.
So while Pokemon is still successful and certainly still good, maybe Nintendo would want to re-invent it now while it's still a big brand and people aren't sick of it. Tomb Raider learned it the hard way in that it had to become irrelevant and outright POOR before they rebooted it. Why wait that long?
And if you switch things around while the old formula is still fresh then you can re-introduce the old style later on. I don't know if Nintendo planned it with Mario but they fucking nailed it. 2D Mario disappears for years, people miss it, and NSMB just owns the sales charts. And those games are pretty formulaic and unoriginal. But with the time in between the concept becomes fresh again. You get a free pass for playing it safe! Mega Man is doing the same thing. Classic Mega Man disappears for years, they bust out Mega Man 9 and the series is back in the saddle. Even if an attempt to re-invent Pokemon fails they can always bring back classic Pokemon. It's like New Coke.