That's a fascinating idea. What if Rare were to take a crack at it?
Here's my 2 cents on the argument: Sonic for the longest time was one of those characters I liked and respected, but had never played many of his games. I used to watch the show a lot though. Good stuff.
My first game was actually Sonic Adventure 2: Battle on Gamecube, and I loved it.
I finally got my Genesis I bought from Goodwill working just this year, and I've been playing some of the oldschool ones. Great stuff, obviously.
In terms of the story, all I can say is that in terms of the show it was very convoluted, but the games seem to be even more so.
Again, I'd like to see a different company do a re-imagining of the franchise, in keeping with all that was good to begin with.