Rare is gone.
I'd want nintendo to do something with the Banjo IP though.

All that Rare needs is Nintendo Quality assurance and enough time to polish their games and make them perfect.

And they would need to get some former talents back, that were fired by MS. Nintendo urgently needs a developer for mature and high quality games, they should never have sold Rare at all.

If Nintendo was to buy anything from Microsoft, I think it would be a lot more important to buy back Rare's intellectual property, not the entire studio.

Most of the important staff -- Seavor, Kirkhope, Hollis, Doak, Norgate, Edmonds, Tilston, Wise, Tim and Chris Stamper -- are long gone. If Nintendo owned the rights to Rare's IPs, however, it could create external or internal studios to produce new games from a number of series: Banjo, Conker, Perfect Dark, Killer Instinct, Blast Corps, Jet Force Gemini, etc. Even something pedestrian like Grabbed by the Ghoulies could become great with the right talent and supervision.

As long as Nintendo would help out in making good games why not? The problem is that Rare does not seem to have even half of the talent left it once had. just the IP would be a good fit for NIntendo the workforce of Rare not so much.

It just wouldn't be the same. Banjo Kazooie is completely different for example.

Where did the good developers of Rare even go?

Nah the major movers and shakers from Rare's glory days are all but gone at this point. It would be like Sega announcing  a Shenmue sequel developed by a brand new German development team no one has ever heard of.

Sadly, Rare is just a name studio, the founder bros. are gone.

Rare is terrible nowadays, all the good developer left it long time ago, so nope, it would suck.

I just want all Rare games back on the Virtual Console

And a proper Banjo Threeie

I don't care which system they make games for, I just want them to finally make some good one's again.