Why don't they remake the original Super Smash Bros? If there are any indie developers out there, would it be possible to create an indie Xbox game with similar characters, sounds, levels, and items. I have more fun playing the original over Melee or Brawl, but I wouldn't even mind new content. Just keep the same feel of the game, graphics don't matter to me really either. Think about this people, if this game got big they could develop DLC or even free title updates. Let's get some ideas going!

There's actually a demake floating around: http://www.supersmashland.com/

So to answer your question, yes. It's totally possible. But I think it'd take a lot more coordination to make a Super Smash Bros. version of MUGEN.

Because they'd rather make new games or sequels than just remake the first one that most people already own, it is Nintendo so they might do this but they seem to go on their own.

I'd say their gameplay doesn't change enough that anyone wants to play the original. Especially with all the crazy characters added.

It would be cool seeing a rerelease as Wii Ware or the equivalent for the WiiU. They could keep the old school graphics and just improve the frame rate for the old game.