It'd appear as if Rare simply decided to not to try (and the introduction makes mention of the death of the genre, too). As you say, the Nintendo goofball geniuses seems to be the only ones capable of actually doing something great with it, and they also have the characters for it. I'll give Rare some credit for trying something new here, and being pretty successful at it too, even if it's at the expense of the tried and true. If anything, I'd say that the ballsiness of ditching the old and going for something completely new feels pretty Nintendo. It's a shame it didn't pay off in terms of popularity.