Being the MASSIVE Falcom fan that I am (currently enjoying the HELL out of Trails of Cold Steel), I would have loved to see a remake of Faxanadu. But man, why would one even think they could profit off a fan remake? Pretty bad move from the get-go.
But yeah, like said. It's a good way to go by doing a Faxanadu spiritual successor.
Also, for the record, while the Xanadu IP itself is owned by Falcom, they didn't develop Faxanadu, nor publish it. They only lent the license out to Hudson Soft, who proceeded to develop and publish the game themselves (they'd later go on to make other games, like Ys IV: The Dawn of Ys). I guess Falcom doesn't really have much of a say in it since, aside from the obvious "xanadu" in the name and a few world elements here and there, the game barely resembles the Xanadu games at all.
I imagine it's a similar case with the Phillips CD-i Nintendo games (Link: The Faces of Evil, Hotel Mario, etc.). I imagine that Phillips owns the rights to those games, like with Hudson Soft (and now Konami) owning the rights to Faxanadu. I could be wrong though, but I'd imagine that's how this works.