Why haven't they made a Labyrinth sequel as a full blown Zeldaesque game with licensed music from Bowie and other great artists of that era?

The other obvious one is a Lobo game. Santa Monica would make a good job of it. Or maybe Moon Knight game made by Insomniac.

he said "featuring Final Fantasy characters in important roles"

Why hasn't Nintendo formed a studio that makes western RPG's for its huge fanbase in North America? If Retro Studios is only going to focus on retro games from the past, which are not modern RPG's, then they should create a new studio. It would sell well, I think!

Kingdom Hearts doesn't even have FF characters anymore, and the premise would be very different.

It does. Moogles are still present, and both Auron and Cloud are name-dropped. Nomura also implied in recent interviews that their involvement would be brought back in light of the response to KH3.

The Traverse Town gang was pretty important in the first game.

Why havent From software made a soulsborne Berserk game yet? They seem allergic to money!

Why haven't Intelligent Systems made another Paper Mario game like The Thousand-Year Door

Warhammer 40,000: Space Marine, but it's a Destiny clone.