Gross. Don't do it. On top of ruining everyone's childhood, the critics'll hate it just because Pokemon's name is attached to it. I see a lot of people giving examples of other live action flicks panned by critics, but has it really been so long that we've forgotten how they all reviewed the Pokemon movies when they actually came out in theathers? None of them ever "got it", and I'd suspect that none of them ever will.
They probably still think Pokemon is a fad and not a franchise. I guess that means the Mickey Mouse universe is a fad too, using that logic. What a waste of time The Sorcerer's Apprentice was (I'm being sarcastic refering only to the Fantasia short. The live action "inspiration" really was a waste of time).
@LividZephyr - I'd be a part of that crowd. And I'd feel like a part of me died on the inside if I saw that. I honestly wonder how many people in my demographic actually want to see stuff like this? Why can't cartoons stay in their own world, where character design actually means something? I mean, you got those indy fan projects like the Mega Man movie and the Sonic the Hedgehog movie, but I think those are done at least somewhat ironically, and doesn't affect the canon in any way.
Here's what I would propose instead. What if some other animation studio took the helm for a Pokemon movie? I remember discussing this over email with someone else before, and we thought it'd be amazing to get a Disney/Don Bluth level story, animation quality and sense of emotion for a Pokemon centric movie (if you have trouble with thinking of Pokemon centric stories, just assume they did the first Pokemon Mystery Dungeon. But with that glorious animation budget and awesome storytelling principles yo~. Get some of the Pixar team in there, and I guarantee it will be a fun time to be had for everyone). I'd love to see Disney's take on it, seeing how they handled different IPs in Wreck-it-Ralph (though I'd prefer 2D). Heck, I'd try to go back into animation just for the opportunity to work on such a film. :P
I think Miyazaki would work better if it's human/trainer centric, though. He has a way of showing really scenic, beautiful worlds and telling stories blending both people and creatures.
Edit: Oh shoot, I didn't see that the last relevant reply was in October! Oy, thread locked? :( Maybe we can discuss other animation studios doing a Pokemon movie, eh? Eh? Yes? No. I dunno.