Not so much watered down but a Yellow remake with the following added:
Version determines starter(with Version exclusives)
Co-Op mode <- points to Double Battles being more common while potentially making the game easier
Wild encounters largely that of Pokémon GO. Co-Op mode increases catching benefits. Legendary encounters utilize old format of battling to capture.
Type chart updated to include Dark, Steel and Fairy(along with fix to Ghost vs. Psychic)
Alolan variants added to fill in gaping holes in Type chart. This may have a noticeable impact on Gym Leader, Elite Four and Team Rocket teams. Alolan Meowth/Persian for example in Team Rocket while Lorelei could have Alolan Ninetales and/or Alolan Sandslash. Same with Agatha and Alolan Marowak.
Pokémon Amie to give that unique feel to your starter and other Kanto favorites
Genders and Infatuation mechanic added(wasn't around in Yellow)
Mega Evolution added with potential additions to Mega Evolution(Mega Arcanine or Rapidash for example)
Unique moves to starter that replace HM's <- honestly biggest selling point so far for keeping a starter that can't evolve
Meltan added to Pokédex(Steel Type)
Mini-Game added for people to earn points to improve Pokemon stats(since grinding via Wild Pokemon battles is unavailable)
The thing holding me back is buying a Switch. Easily over $400 when tax and other required accessories are factored in. I should mention that it's not the original 151 when Meltan and Alolan variants are factored in. All told, that puts the number at 170. If they had pulled a reverse Gold, Silver by adding Johto as post-game along with Johto Pokemon(which adds 100 to the Pokédex), it'd actually be a really good game.