i signed up to reply to this (and hopefully many other topics so it doesn't seem like a waste of a registration). here's why i like this idea:
Pokemon Red/Blue (Red/Green) was a great game concept. i enjoy the concept art for Capsule Monsters much more however and feel that the original concept (or at least the vibe it gave off to me) was never truly reached, but at most was reached in Red/Blue.
the original games were more RPG like than Pokemon-like. over time, the game series evolved into its own genre, but the first pair of games definitely (in my opinion) seemed to be more similar to games like Final Fantasy or Breath of Fire. which i love for aesthetic and concept reasons.
it would be so cool to take the original game, perhaps leaving the screen resolution alone but expanding (doubling in size) the pixels and making a new version of Red/Blue reminiscent of old school gaming. however, it would be much better to make certain screens completely up to date graphics wise. so you have your adventure mode similar to an 8-bit style, then battle/pc box mode in the DS style. and to further wow the player, make the game monochrome. with the original chiptune music. maybe with some reverb.
now keep the concepts of physical/special moves, natures, and etc in the game. alter move sets a bit just to make sure that for the most part all the original 151 pokemon are as challenging as they were in Red/Blue, then add all the other pokemon at the end of the game and do not make them easily obtainable. or rather, make more of them not obtainable unless cheated or traded for. but the ones that are do not come easy. basically, the game would be exactly how it was when it was first made (with glitches fixed of course) until you beat the champion. then a series of challenging events could occur afterwards to give the game even more replay value.
lastly, i do NOT think this should be a game produced by Nintendo/Game Freak. although i would love it, i just think this is something that would be better if fan-made and imported onto a DS cartridge. remade games are good because the old game systems and consoles, over time, break or become too fragile to play. or the old games are scarce and hard to find. especially with old pokemon games, the internal batteries die. and the screen being lit up in the DS is a definite upgrade for handheld. so... remaking an old game 8-bit style seems more cool to me than completely recreating it.
but this is just my opinion and i wanted to share it. if anyone knows of anyone doing anything like this, i'd love to hear about it.