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I dont understand that tweet at all. Who tweeted the "i can do"?

Its obvious Xenosage wont continue cause Monolith works for Nintendo and does Xenoblade instead now. That is the new Xenosaga.

As for the HD collection, Namco can totally make that happen if they want. Dont know if they want though, as the show for demand wasnt gigantic or anything. I would rather they brought some localisation over like Tales of Innocence R and even God Eater 2.
Xenosaga is already available in the west on PS2. Yeah... an HD collection would be awesome, but if it cant happen, it cant.