I'm pretty sure Retro is done with Metroid. After the three games and Wii-conversion, they're probably burned out a bit.
They probably WERE burned out, but keep in mind that Metroid Prime 3 came out in 2007 which was no less than 5 years ago. Considering that over 5 full years have passed since they last worked on anything to do with Metroid I think they could be past the burned out point by now and could be up to doing it again.
I do not want to see Nintendo's mascots cross over in anything other than Smash Bros. It'll come off as cheesey or hookey. No thank you.
I agree, but I will make an effort to look past that if this rumor is true and the game actually ends up good. I might not be happy with this direction, but that doesn't mean the game will end up being terrible gameplay wise.
I also think that after how badly butchered the Samus character was in Other M I don't really think something like this matters anymore. The "purity" of the character is already tainted, so what's the difference if she crosses over with Star Fox? Before Other M I would probably be really worried or angry about this potential crossover, but now I think the damage is done so at this point who cares?