And have Capcom face the same problem they had with Dead Rising on Wii...no not going to happen.
I would rather have a new Resident Evil game than a port of a game originally designed for a much more powerful system.
I have to agree here. Resident Evil 4 was a game slow-moving enough at times. Unless they do something to speed things up, and make it a bit more "terrifying" at places that are empty, I'd rather they produce something closer to this, anyways.
What's interesting might just be a game that's on rails through the parts where you travel, but with free-range movement for other points. Although... It seems like I'm talking about StarFox 64 when I read that.
It doesn't seem like a bad formula, though. The idea would be that the steady, forced progression would make it so you couldn't go slowly enough that you lose the horror factor. If the code were written well enough, each trip from place to place wouldn't have to be the same, in fact, they could even script out different attack patterns and routes for people who wanted to backtrack, all on rails.
It wouldn't be too bad, especially if this game is successful. It could even be great.