The entire Sonic canon needs a nuke dropping on it. Get rid of all the characters except Sonic, Tails and Knuckles, drop any pretention about it being on a planet populated by humans (besides of course Robotnik- ROBOTNIK, not Eggman) and put out a SSF2HD style remake of Sonics 1, 2, 3 & S&K complete with maybe a few extra levels and/or expansions somewhere. Provided it's done well and not like the abortion that was Sonic Genesis. Include cut-scenes if needed but never any longer than 30 seconds. Keep the action at the forefront of the game.
Oh, and don't ask Sonic Team to make it.