How so? Gameboy era was all about exploring pokemon world and legends by your own ways, starting with a single basic creature. The pokedex entries always tell bizarre behaviors which are basically unused when we get to the game.
By that time you would be sure that was hardware limitations that stopped us from truly immerse on that world. But as of now they are just creating pointless gimmicks in battle and pokemons are nothing but 3d models placed randomly on a regular landscape. What's even the point to make the game 3d open world if you don't make an appealing world?
You talk about the right direction for a business corporation standingpoint, even that, it won't be good if you have the potential to reach an even wider audience but you remain with a part, even if its big in absolute numbers.
The brand is huge no doubts, but talking about the gaming aspects, it's just don't match.
Pokemon has always been about one thing collecting Pokemon and the player's interactions with them (battling and trading etc...) everything else was chopped and changed around this aspect to suit the times for the target audience of the era, this is apparent in that Pokemon only exists because of the GB transfer cable. What you think Pokemon is about was merely the team at the time applying one man's idea to the Earthbound template after all Creatures were formerly Ape the the Earthbound team, the goal was never to go down the path you're suggesting it was to always build a subculture around the collection and player interactions of Pokemon this is why more and more features over each gen focused more on interacting with Pokemon rather than what you mistook the series for this is even seen from as early as G/S onward and why newer games will even employ gimmicks.
The franchise never aimed to pushed hardware because unlike most series it always had a clear focus on what it wanted to do and who it's audience was always going to be and this continues even today hence why older fans are constantly highlighting what they don't like but the games keep doing better and better, here's something you're mistaken on Pokemon is reaching the wider market it always has been it's you who is not part of it hence why they're going the right direction on all fronts not just from a corporate view even if it means leaving some old fans behind. It may not please some to hear that but believe me that's the reality of things, brand power alone doesn't maintain the level of success Pokemon has consistently commanded since it first released.