1. Movies based on games are crap because Hollywood keeps turning games that would make bad movies into movies (Mortal Kombat, Street Fighter etc.), instead of turning games that could potentially be amazing movies (Grim Fandango, Psychonauts etc.). Just because a game is considered great and is popular, doesn't mean that it would make a great movie (stories are very important in movies, while in the case of video games the gameplay is the main feature most of the time).
2. A movie made to cater solely to gamers would suck bigtime.
3. Giving Pixar's trackrecord, I'm sure they could at the very least make a "decent" Mario movie.
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