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NightDragon83 said:

Most of the core members of Rare had already split or were on their way out by 2002 so it wouldn't have mattered much.

If Rare had stayed with Nintendo they'd be like Retro and would probably just be doing mostly Nintendo IPs these days.  Remember, Nintendo were the ones who took an original idea from Rare (Dinosaur Planet) and forced them to shoehorn the StarFox franchise into the game instead.  Dinosaur Planet had the ability to be a "Zelda killer" when it was first shown off on the N64, but turning it into a StarFox game ruined the direction of the game, and the StarFox elements just felt tacked on.

Nintendo turned it into SFA because the project ran into problems and was not progressing like many of Rare's projects in the late 90s, they had the concepts but struggled to pull them off with out supervision and someone holding their hand in development.