I'm sorry, but what's the big deal about it not being hand held? It's not like the would stop making it for the DS, we would still have our portable games but their would be one on a console to.
As for it being on a Xbox/PS that's dumb, keep it on the Wii, but the idea for the game is great imo. I don't see how it would hurt. Something along the lines of.
You start off in Kanto, create your trainer...from head to toe. Age, sex, height, weight, trainer type, hair color, etc etc. Then you can either create your rival, or just have it be Gary. Pick your starter and go through the game just R/B. But in 3D. Pokemon are roaming around, kinda like
this, but obviously much more polished. There are NPC controlled trainers roaming around that you can go up and challenge, the original gym leaders are obviously their.
Once acquiring your 8 badges you enter a Pokemon Leauge tournament, and if you win you get to battle the Elite Four. If you lose, keep training and enter the next one.
After a few months, the next region comes out and you can either transfer your old team over, or start fresh. If you choose to transfer, their will obviously be level scaling. And then the process repeats.
Add in online capabilities, with tournaments, contest battles, trading rooms, maybe even the ability to transfer your Pokemon from DS to Wii so those who want to train while on long car rides can still do that.
I'm no game dev, so this obviously isn't as great as an idea as there can be, but hopefully you get the jist of it. Hopefully they do something like this eventually. I remember back when I was playing blue when I was 10 years old I was hoping there would be something like this for the N64, then GC, and now Wii. Maybe next gen....hopefully.