This actually makes me a touch more hopeful about the future of Metroid. The "new looks and speed" thing suggests that this game would be a sort of reboot, so Nintendo's rejecting it may mean they still have plans for the series.
Metroid might be hibernating now, but considering that after 1994, it took a 8-year hiatus before getting two games at once, I doubt it's dead.
Love and tolerate.