I believe that they absolutely can get ahold of some fitting actors and put them in good looking, canon outfits, and give them nice, canon tech (Pokeballs, Pokedex, etc.), and write a great story; that can all be done very well, if they WANT to, otherwise they would just do a terrible crap job of it and we'd end up with something like the live-action "Dragonball Evolution" tragedy, or worse, the "The Legend of Chun-Li" disaster.
But the really iffy part is the Pokemon themselves, and having them appear as actually presentable creatures. Having the Pokemon look great and real (including their activities, such as using their special abilities and battling), and having them sound great. That's perfectly possible too, judging from great-looking computer generated creatures in other big-time movies.
So my answer is yes, but only if they do it well. Otherwise, no.